Eicher Motors has continued to post strong results on the back of stellar performance from its motorcycle – Royal Enfield – and commercial vehicle business – Volvo Eicher Commercial Vehicles.
In Q1 FY2024 the revenue came at Rs 3,986 crore, up 17.3 percent, compared to Rs 3,397 crore last year. EBITDA was Rs 1,021 crore, up 22.8 percent, and net profit at Rs 918 crore, up 50.4 percent as compared to a profit of Rs 611 crore during the same period last year.
This the company says is the best-ever Q1 performance and is also the fourth consecutive quarter of highest-ever revenue from operations and net profit.
During the period Royal Enfield sold 225,368 motorcycles, up 21.1 percent YoY and 19,571 commercial vehicles, up 12 percent YoY.
CKD plant
Siddhartha Lal, MD & CEO, Eicher Motors said, “We recorded an excellent performance in FY2023, and we have had a solid start to FY 2024. Q1 has been significant for Eicher Motors as both Royal Enfield and VECV have registered their best-ever first quarter performance and have recorded tremendous growth. At Royal Enfield, the Hunter 350 and Super Meteor 650 have significantly helped us in growing the market and continue to bring in a new set of consumers from across the globe, which has further increased the addressable market for us. At VE Commercial Vehicles, we registered our highest ever sales and revenue for Q1 and made strong market-share gains in both – Light Medium duty and Heavy duty trucks. Overall, we are on a solid growth path and have a resolute focus on our long-term strategic business objectives.”
B. Govindarajan, CEO, Royal Enfield and Wholetime Director, Eicher Motors said, “At Royal Enfield we continue on our robust growth momentum, and have registered our highest ever Q1 sales, beating our previous high of Q1FY19. With our diverse range of products, we have been able to maintain a healthy market share in the mid-size segment not only in India, but have also been able to sustain our standing in overseas markets. A big highlight for us during the quarter was the spectacular performance of the Hunter 350 as the motorcycle recently crossed the 200,000 global sales mark in just eleven months since launch. In June, we announced our fifth global CKD facility outside India in Nepal. This facility will help us cater to the growing and expanding Nepal and SAARC region.”
Vinod Aggarwal, MD, and CEO VECV said “We continued to build on our strong performance in the last financial year and have recorded our best ever first quarter with sales of 19,571 units as against sales of 17,469 vehicles in Q1 of the corresponding quarter last year with a growth of 12%. While the CV industry 3.5T and above grew by 0.5% and we have outperformed the industry growth resulting in improvement in our market shares.”
Royal Enfield strengthened its global presence with the inauguration of its fifth CKD assembly unit outside India in Birgunj, Nepal. The commencement of operations of this exclusive Local Assembly Unit reiterates Royal Enfield’s commitment to Nepal, and will give a significant boost to the company’s business in the SAARC region. The CKD unit is a state-of-the-art, modern facility spread over 1-lac sqft and will cater to growing demand in the country.
