Eicher Motors on Tuesday reported a 25.45% year-on-year increase in consolidated net profit to Rs 518 crore for the quarter ended September, on the back of a substantial increase in revenues.
Eicher Motors on Tuesday reported a 25.45% year-on-year increase in consolidated net profit to Rs 518 crore for the quarter ended September, on the back of a substantial increase in revenues. Net sales of the company increased by 23.5% y-o-y to Rs 2,167 crore as a result of strong demand for the Classic-350 motorcycle. The operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), increased by 25.9% y-o-y to Rs 683 crore, while the operating margins expanded by 60 basis points to 31.5%. “We had a very good quarter in terms of both topline and bottomline and our volumes in the motorcycle segment continued to grow. As a result, we have lost some market share. Our third plant in Tamil Nadu, which commenced operations in August, will further help us cater to the increasing demand for our products,” said Siddhartha Lal, managing director and CEO, Eicher.
Eicher Motors has earmarked capex worth Rs 850 crore for the current fiscal and a bulk of that has been spent for setting up the third manufacturing unit in Tamil Nadu. Also, some of the capex has been utilised to set up new design centres in Chennai and the UK. According to Lal, the company will not launch any new products till April 2020 when the BS-VI emission norms will kick in. However, the company will continue to introduce some refreshed variants of the existing products in the market.
Royal Enfield launched two new motorcycles — the Interceptor 650 Roadster and the Continental GT 650 Cafe last week at the EICMA motor show in Milan last week. The total number of motorcycles sold by the company increased by 21.7% y-o-y to 2,02,744 units, and exported 10,000 units, — a growth of 25% y-o-y. Volvo Eicher Commercial Vehicles — a joint venture between Eicher Motors and Volvo — reported a 44.9% y-o-y rise in net profit to Rs 95 crore. Revenues rose by 18.6% y-o-y to Rs 2,339 crore.