Royal Enfield parent Eicher Motors’s Q2 profit up 6%
Royal Enfield revenue rises 11% to ₹2,408 crore in the September quarter, Eicher Motors’s commercial vehicles arm records revenue growth of 27%
New Delhi: Eicher Motors Ltd, the maker of Royal Enfield motorcycles and commercial vehicles, on Monday reported 6% increase in consolidated profit after tax at ₹548.76 crore in the second quarter ended 30 September. The company had posted a consolidated profit after tax of ₹518.02 crore in the same quarter last fiscal, Eicher Motors said in a regulatory filing.
Total revenue from operations stood at ₹2,408.17 crore in September quarter as against ₹2,167.3 crore in the year-ago quarter. Total expenses during the quarter stood at ₹1,752.82 crore as against ₹1,535.24 crore in the same period last fiscal.
Total revenue from operations at Eicher Motors’s motorcycle business—Royal Enfield—rose 11% to ₹2,408 crore while Ebitda grew 7% to ₹729 crore. Royal Enfield sold 209,963 motorcycles in the September quarter, registering a growth of 4% from 202,744 motorcycles sold in the same period last year.
“Despite several challenges that came up during the quarter, Royal Enfield recorded a strong performance in Q2 2019. The highlight of the quarter was the launch of our 650 Twins at Santa Cruz, California, in September 2018. We launched the motorcycles in Europe at EICMA motor show in Milan last week, and we are now all set to launch these motorcycles here in India later this week,” said Eicher Motors CEO Siddhartha Lal.
Royal Enfield also showcased the Concept KX prototype—a V-Twin motorcycle developed by Royal Enfield’s design and engineering teams in India and the UK. Concept KX is inspired by Royal Enfield’s original Model KX of the late 1930s.
Royal Enfield expects sales in its new North American business to almost triple this year and is aiming to dominate the market for middleweight bikes into which Harley-Davidson Inc. has just shifted in a bid to revive sales, Bloomberg reported on Friday.
In the commercial vehicles segment, VE Commercial Vehicles (VECV)—Eicher Motors’s joint venture with AB Volvo—recorded revenue of ₹2,966 crore in the September quarter, up 27% from ₹2,339 crore in the same period last year. Ebitda grew 24% to ₹267 crore from ₹215 crore in the same period last year. Profit after tax rose 49% to ₹142 crore from ₹95 crore last year. VECV sold 18,696 trucks and buses in the September quarter, up 24% from last year.
“We see a strong growth momentum in the industry and a growing demand for modernized commercial vehicle fleet from transporters,” said Lal.
Eicher Motors is setting up a commercial vehicles plant—its second—in Bhopal, entailing an investment of ₹400 crore with a capacity of 40,000 vehicles per annum.
We are well prepared to lead the modernization in the (commercial vehicles) industry and meet the BS VI emission norms,” Lal added.
On Monday, Eicher Motors shares fell 2.33%, or ₹524.75, to ₹21,977.25 on the BSE while the benchmark index Sensex shed 0.98%, or 345.56 points, to end the day at 34,812.99.
Eicher Motors’s results were announced after market hours.
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