Royal Enfield and commercial vehicle maker Eicher Motors on May 27 clocked a healthy 72.9 percent year-on-year growth in consolidated profit at Rs 526.14 crore for the quarter ended March 2021, driven by strong volume and operating performance.
Consolidated revenue from operations grew by 33.2 percent year-on-year to Rs 2,940.33 crore in Q4FY21, the company said in its BSE filing.
Royal Enfield sold 2,03,343 motorcycles in the quarter, an increase of 25 percent from 1,63,083 motorcycles sold over the same period in FY20. VECV volumes have also grown around 66 percent YoY to 19,300 units.
The operating performance was strong for the quarter with EBITDA (earnings before interest, tax, depreciation and amortisation) growing 46.8 percent year-on-year to Rs 634.39 crore and margin improving 200 bps to 21.57 percent.
However, in the COVID year, FY21, consolidated profit fell 26.3 percent to Rs 1,346.89 crore and revenue declined 4.7 percent to Rs 8,720.35 crore compared to previous year.
"It has been a challenging year for the industry with the COVID-19 pandemic leading to disruption in production, supply chain and retail operations. During the year, there were challenges on account of factors such as supply chain constraints and commodity price increase. However, demand continues to be good. 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.
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"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. In the heavy duty segment, VECV volume grew by 6 percent in FY21 compared to last year against a decline of 21 percent in industry volume," he added.
On the standalone basis, the profit grew by 35.2 percent to Rs 468.08 crore in Q4FY21 compared to year-ago quarter, and revenue in the same period at Rs 2,922.44 crore increased by 34.1 percent YoY.
The standalone EBITDA jumped 42 percent to Rs 644 crore and margin improved by 124 bps to 22.03 percent compared to year-ago quarter.Eicher Motors approved dividend of Rs 17 per equity share for the financial year ended March 2021.