Eicher Motors Q1 Results: Net profit rises 20% to highest ever at ₹1,101.5 crore over sales boost, revenue up 10% YoY

Eicher Motors Q1 Results: Eicher Motors announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Thursday, August 8, reporting a rise of 20 per cent in net profit at ₹1,101 crore, compared to ₹918 crore in the year-ago period. The commercial vehicle maker's revenue from operations rose 10.2 per cent in the first quarter of the current fiscal to ₹4,393 crore, compared to ₹3,086.4 crore in the year-ago period.

The auto major said in a regulatory filing to the stock exchanges today that it has reported its highest-ever quarterly net profit, revenue, and operating figures in the June quarter, boosted by high sales of some of its motorcycle models.

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Eicher Motors Q1 Results: Key Metrics

Eicher Motors, which makes the Royal Enfield motorcycle line, reported a bigger-than-expected first-quarter profit in the June quarter. This profit was helped by strong sales of higher-margin models such as the Himalayan 450. 

On the operating front, Eicher Motor's earnings before interest, tax, depreciation, and amortization (EBITDA) in the June quarter rose 14.2 per cent to ₹1,165.5 crore, compared to ₹1,021 crore in the year-ago period. Margin rose 26.5 per cent compared to 25.6 per cent in the same period last year.

For the Q1 FY 2024-25, VECV’s revenue from operations was ₹5,070 crore, up by 1.8 per cent over the previous year’s revenue of ₹4,980 crore. EBITDA for the first quarter was ₹385 crore compared to ₹387 crore last year. Profit after tax stood at ₹319 crore compared to ₹181 crore last year. VECV recorded sales of 19,702 vehicles for FY25 from 19,571 vehicles in FY24.

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Siddhartha Lal, Managing Director, Eicher Motors Ltd said, “After a strong performance in FY24, we have started this year on a confident note, registering our best-ever quarterly financial performance with both Royal Enfield and VECV reporting steady growth.''

‘’At Royal Enfield, we launched the Guerrilla 450, our premium, modern roadster on the Sherpa platform. We believe the Guerrilla is a formidable motorcycle with strong potential and will be a game-changer…Meanwhile, VE Commercial Vehicles recorded its best-ever first-quarter sales, gaining volumes in key segments,'' added Lal.

Eicher clocked record-high sales in the previous two fiscal years due to strong demand from urban consumers, its key demographic. But demand has begun to peter off due to various factors, including rising competition and persistently high inflation. During the quarter, Royal Enfield recorded sales of 2,27,736 motorcycles as compared to 2,25,368 motorcycles sold during the same period in FY 2023-24. 

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Domestic sales of Royal Enfield's models with an engine capacity of more than 350cc, such as the Interceptor 650, jumped 29 per cent in the quarter, according to previously released monthly data. These higher-margin motorcycles accounted for roughly 14 per cent of sales, up from 11.1 per cent last year.

That helped counter the roughly four per cent drop in domestic sales of the company's sub-350cc models, such as the Hunter 350, which accounted for roughly 85 per cent of overall sales. Royal Enfield is the market leader among India's premium motorcycles, but its lead is being eaten into by Triumph, which has partnered with Bajaj Auto in India, and Harley Davidson, whose local partner is the country's top two-wheeler company, Hero MotoCorp.