Eicher Motors Q2 profit surges 25% to Rs518 crore on Royal Enfield sales
New Delhi: Eicher Motors on Tuesday reported 25.4% rise in its consolidated profit after tax to Rs518 crore for the second quarter ended 30 September.
The company had reported profit after tax (PAT) of Rs413 crore for the same period of previous fiscal. Total income from operations rose to Rs2,167 crore for the second quarter as compared to Rs1,755 crore in the same period of previous fiscal, Eicher Motors said in a statement.
The company’s two wheeler arm Royal Enfield sold 2,02,744 motorcycles, registering the best ever quarterly sales volume with a growth of 21.7%, as against 1,66,582 units sold in the same period last year. Commenting on the recent unveiling of the Interceptor 650 roadster and the Continental GT 650 cafe racer, Eicher Motors managing director and chief executive officer (CEO) Siddhartha Lal said two models along with its existing portfolio would help the company expand the mid-weight (250-750cc) motorcycle segment globally.
Later in a conference call, Lal said the company has set a target to roll out 8.25 lakh bike units during the current fiscal year. When asked about new product launches, he said Royal Enfield would not introduce new models till around 2020 when BS VI emission norms come into play.
“There may be, however, launches of variants of the current products,” Lal said. Commenting on the VE Commercial Vehicle’s (VECV’s) performance, Lal said with better price management and continued focus on material cost reductions, EBIDTA margins for the company improved by 100 basis points for the quarter.
“With reforms like GST, migration from BS III to BS IV emission norms behind now, the commercial vehicle industry started recovering in Q2 and VECV also registered a growth of 12.4 per cent as compared to the corresponding quarter last year,” he added.
VECV’s total income from operations for the second quarter stood at Rs2,339 crore as compared to Rs1,972 crore during the same period last fiscal. VE Commercial Vehicle is a joint venture between Volvo Group and Eicher Motors. PAT rose to Rs95 crore for the second quarter as against Rs66 crore in the previous fiscal.
On Tuesday, shares of Eicher Motors fell 1.57% to Rs30,083.20 apiece on the BSE while the benchmark Sensex shed 0.28% to end the day at 32,941.87 points.