Eicher Motors Limited (EML) reported on August 3 that its consolidated net profit zoomed 50 percent to Rs 918.34 crore on the back of softening commodity prices, inventorisation benefits of its product lines as well as positive volume growth in the bike-making arm Royal Enfield (RE) in the first quarter of financial year 2023-2024.
EML’s Profit after Tax (PAT) during the first quarter of financial year 2022-23 was Rs 610.66 crore. The company claimed that this is its best ever Q1 performance, and is also the fourth consecutive quarter of highest ever revenue from operations and PAT.
The company's consolidated revenue rose 17.3 percent on a year-on-year (YoY) basis to Rs 3,986 crore in the quarter under review as against Rs 3,397.46 crore in the year-ago period. EBITDA was Rs 1,021 crore, up 22.8 percent as compared to Rs 831 crore in the same quarter of the previous financial year.
EML’s results exceeded analyst expectations, as an average of five brokerage firms estimated the company’s net profit would zoom 33 percent to Rs 818 crore during the first quarter of the current financial year. The analyst estimates, on average, also expected revenue from operations to increase 17 percent YoY to Rs 3,970 crore.
Talking about the company's performance, Siddhartha Lal, Managing Director & CEO, Eicher Motors Ltd., said: “We recorded an excellent performance in FY23, and we have had a solid start to FY 2024. Q1 has been significant for Eicher Motors Limited as both Royal Enfield and VECV have registered their best ever first quarter performance, and have recorded tremendous growth."
Furthermore, Royal Enfield recorded its best-ever performance in Q1 FY2024. The company’s volumes during the April-June quarter stood at Royal Enfield sold 225,368 units of (consolidated) motorcycles in the quarter, an increase of 21.1 percent from 186,032 units (consolidated) of motorcycles sold over the same period in FY 2022-23.
"At Royal Enfield, the Hunter 350 and Super Meteor 650 have significantly helped us in growing the market and continue to bring in a new set of consumers from across the globe, which has further increased the addressable market for us. As we continue to strengthen our product portfolio, we have some really exciting and amazing motorcycles being launched in the forthcoming quarters," added Lal.
Domestic sales contributed 207,171 units to its total sales, an upsurge of 31 percent from 157,642 units in Q1 of FY2023. Exports, however, declined by 31 percent during the quarter to 20,535 units, down from 29,563 units in the same period last fiscal year.
"Overall, we are on a solid growth path and have a resolute focus on our long-term strategic business objectives,” Lal further added.
Shares of the company ended 1.41 percent higher at Rs 3,380.10 on the BSE on August 3, before the results were announced.
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