Driven by a 60% growth in number of units sold in the January-March quarter, Royal Enfield, an arm of Eicher Motors Limited, has reported a 68.3% growth in its net profit for the quarter ended March 2016 to R359.30 crore as compared to R213.50 crore in the same quarter last fiscal.
The income from operations during the quarter increased by 61% to Rs 1,545 crore as against Rs 961.20 crore in the same quarter last fiscal.
For the 12-month period (April 2015 to March 2016), the net profit grew 66% to Rs 1,016.40 crore as against Rs 611.80 crore in the previous 12 months. The income from operations grew 55.7% to Rs 5,227 crore as against Rs 3,357 crore in the previous fiscal. For Q4, the company sold 148,185 units as compared to 92,845 units (60% growth) and for the full year, the company sold 508,099 units as compared to 331,169 units sold in the previous 12 months, registering a growth of 53.42%.
The company has announced a fresh investment of Rs 600 crore for the current fiscal to increase the capacity of Oragadam plant (phase II) near Chennai as well as investments in its new plant at Vallam Vadagal (also near Chennai) for phase I. For FY17, the company targets to sell 675,000 units, a sharp jump over the previous fiscal of 2016 through increased footprints across the country, bringing down the waiting period of Classic 350 from a peak of 9 months to 3 months and entering into newer markets within India as well abroad.
For the full year, the exports grew 37% to 11,700 units and the company hopes to maintain the same growth during the current fiscal too, said Siddhartha Lal, managing director and CEO, Eicher Motors Limited.
Responding to questions during a concall on Thursday, he said: “We are bullish on our growth path. We continue to maintain our undisputed leadership in the mid segment (250CC to 750 CC) bike segment. The new product Himalayan (for which we have started bookings recently) is getting encouraging response.”