Eicher Motors Limited (EML) has announced its audited consolidated financial results for the first quarter of the current financial year. For Q1 FY21, Eicher Motors’ total revenue from operations stood at Rs 818 crores, down by 66 percent compared to Rs 2,382 crores during the corresponding quarter of FY 2019-20. On the other hand, EBITDA was Rs 4 crores compared to Rs 614 crores during the same quarter of the previous financial year. A loss of Rs 55 crore was also reported last quarter against a profit of Rs 452 crore during the same period last year. Now coming to the motorcycle sales, Royal Enfield managed to sell a total of 58,383 bikes in the last quarter. That said, the company reported a decline of 68% as the sales went down from 1,81,966 motorcycles sold during the same period in FY 2019-20. Retail operations at Royal Enfield have now resumed through the unlock phases in a staggered manner. The company now has 921 dealerships and 638 studio stores are open and functional across India.
Now coming to the financial results for VECV (Volvo Eicher Commercial Vehicles), the company’s revenue dropped to Rs 641 crores during the quarter ended June 2020. The revenue was down by 72 percent from Rs 2,255 crores in the same period last year. On the other hand, EBITDA loss was Rs 72 crore compared to a profit of Rs 137 crore last year in the corresponding quarter. Moreover, a loss of Rs 120 crore was reported against a profit of Rs 38 crore last year. Talking of the sales performance, VECV registered an 84% sales decline with 2,129 units sold in the last quarter as against 13,331 units sold in the Q1 of the last financial year.
Speaking on Eicher Motors’ performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd said that the previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. He added that the company believes that the long term potential for both Royal Enfield and VECV is very promising. He also stated that towards the end of the quarter, Eicher Motors has witnessed encouraging consumer sentiment which was evident in the sales for the month of June. Lal believes that this trend will continue into this quarter as well.
Commenting on Royal Enfield’s performance, Vinod K. Dasari, CEO, Royal Enfield said that through a challenging environment, the company has remained focused on the opportunities for Royal Enfield. He adds that from a consumer point of view, Royal Enfield’s effort has been to build seamless and hasslefree processes and focus on retail and service excellence. Dasari states that from a business point of view, the initial consumer sentiment over the last two months has been very encouraging and the demand from semi-urban and rural towns have picked up well.
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