Eicher Motors said it is planning to invest Rs 600 crore in its Royal Enfield business to expand capacity, and bring in new products in the segment.
Royal Enfield’s margins were at a record high with volumes up 72 percent (Y-o-Y) and 14 percent (Q-o-Q) to 5,51,000 units in Q4CY13.
Eicher Motors has revised its Royal Enfield CY14 guidance to 2.8 lakhs units against the earlier 2.5 lakhs.
According to Siddhartha Lal, MD & CEO, Eicher Motors, pricing is not an issue for Royal Enfield as “margin has more leeway”.
Speaking on the company’s performance, Lal said that Eicher Motors has posted a solid operational growth despite a weak environment.
The company’s profit after tax for the quarter jumped 32 percent to 96.2 crore against Rs 72.7crore, and the revenues were up 1.5 percent to Rs 1,679.5 crore against Rs 1,653.5 crore on a year-on-year basis. The operating profits for the quarter jumped 41 percent to Rs 166.5 crore. However, the company witnessed decline in the commercial vehicle segment.
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