Eicher Motors Q4 results: Net profit grows 73% as sales rise on good rural and urban demand
Mumbai: Eicher Motors, the maker of Royal Enfield motorcycles reported its highest ever quarterly revenue for the January-March period as sales exceeded 200,000 units on good rural and urban demand.
The company reported consolidated revenue of Rs 2,940 crore, up 33% year-on-year. This includes revenues from VE Commercial Vehicles, the company’s joint venture with Sweden’s Volvo.
EBITDA improved 47% on-year to Rs 634 crore with an EBITDA margin of 21.6%, an improvement of 199 basis points on-year. 1 basis point is 0.01%.
Net profit grew by 73% to Rs 526 crore.
“Royal Enfield witnessed very good pick up in the second half of the year, and registered a strong performance in Q4. We have seen encouraging demand coming from rural as well as urban segments,” said Siddhartha Lal, Managing Director of Eicher Motors.
“The commercial vehicle industry also showed equal resilience and saw good recovery in the latter half of the year. VECV gained market share across segments,” Lal said.
For the full fiscal year FY21, the company posted a 5% decline in revenue to Rs 8,720 crore. EBITDA declined by 18% to Rs 1,781 crore and EBITDA margin narrowed by 340 basis points to 20.4%.
Profit for the year declined by 26% to Rs 1,347 crore.
Eicher Motors stock declined by 1.01% to close at Rs 2,605.3 per share on the BSE on Thursday as against a marginal rise in the benchmark Sensex. The results were announced post market trading hours.
The company declared a dividend of Rs 17 per share.
Royal Enfield sales benefitted from the company’s push to launch more retail outlets across the country and the launch of new products during the year, said Vinod Dasari, the chief executive of Royal Enfield.
“We added 535 dealerships and studio format stores during the year taking our retail presence to 2,056 retail touchpoints across more than 1,750 cities,” he said in a media statement.
On the commercial vehicles side of the business, the VECV joint venture reported a 71% growth in revenue to Rs 3,602 crore. EBITDA improved to Rs 320 crore from Rs. 37 crores in the same period last year. Profit came in at Rs. 127 crores as against a loss of Rs. 26 crores for the same quarter last year.
“Favourable measures announced in the Union Budget 2021-22 with respect to voluntary vehicle scrappage, Product Linked Incentive (PLI) scheme and many measures to boost the infrastructure segment, have also aided recovery in this quarter,” said Vinod Aggarwal, managing director and chief executive at VECV.
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