Riding on an increase in sales volumes, higher average selling price (ASP), new launches, and benign commodity costs, Eicher Motors Limited (EML) reported an 18.2 percent increase in net profit at Rs 1,070 crore during the fourth quarter of this financial year. The Royal Enfield maker’s Profit After Tax (PAT) during Q4 FY23 stood at Rs 906 crore.
The company’s revenue from operations jumped 11.87 percent Year-On-Year (YOY) to Rs 4,256 crore. The company's topline during the same period last year was Rs 3,804 crore.
The results were in line with analysts’ expectations as the average estimates of eight brokerage firms forecasted the company’s net profit to grow to Rs 1,013 crore, up 12 percent from the year-ago period. Revenue from operations was projected to jump 9 percent on-year to Rs 4,166 crore, as per the same estimates.
EML’s Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) was Rs 1,129 crore, up 20.88 percent as compared to Rs 934 crore in the same quarter of the previous financial year.
During the quarter, Royal Enfield recorded sales of 227,925 motorcycles, up by 6.17 percent from 214,685 motorcycles sold during the same period in FY 2022-23.
For the financial year ended March 31, 2024, EML’s total revenue from operations was at Rs 16,536 crore up by 14.50 percent as compared to Rs 14,442 crore recorded for FY 2022-23.
The Siddhartha Lal-led company's EBITDA was Rs 4,327 crore, up by 25.65 percent as compared to Rs 3,444 crore in FY23, and PAT was recorded at Rs 4,001 crore, up by 37.31 percent as compared to Rs 2,914 crore for the same period last year.
Siddhartha Lal, Managing Director & CEO, EML said, “We have reported exceptional performance across both Royal Enfield and VE Commercial Vehicles. In the motorcycle business, last year was an action-packed one as the middleweight segment in the industry witnessed a considerable number of launches by international brands in partnership with Indian OEMs."
Its CV arm- Volvo Eicher VECV’s revenue from operations was Rs 21,868 crore, up by 15.38 percent over the previous year’s revenue of Rs 18,952 crore. EBITDA for FY 2023-24 was Rs 1,715 crore, 25.27 percent higher than Rs 1,369 crore last year.
VECV's PAT stood at Rs 823 crore, up 42.06 percent from Rs 579 crore last year. VECV recorded sales of 85,560 vehicles for FY 2023-24, marking a growth of 7.46 percent over 79,623 vehicles in FY 2022-23.
"We also made tremendous progress on EV vehicles with commencement of sales of EV trucks and the global unveil of the new electric-first Small Commercial Vehicle (SCV). With an expanding product range, backed by cutting-edge connected and efficient solutions, we are quite upbeat for the growth potential for VECV," added Lal.
The Board of Directors of the company declared a final dividend of Rs 51 per share for FY24 with a payout of Rs 1,396.4 crore.
Eicher Motors’ stock price ended at Rs 4,670 per share on NSE, up by over two percent from the previous day's close.
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