NEW DELHI: Eicher Motors on Monday reported a 2.39 per cent year-on-year (YoY) rise in consolidated profit at Rs 532.95 crore for December quarter, which was marginally ahead of Rs 523 crore estimated by analysts in an ET Now poll.
The company had reported a net profit of Rs 520.50 core in the corresponding quarter a year ago.
Consolidated sales for the quarter rose 3.42 per cent YoY to Rs 2,328.25 crore in December quarter compared with Rs 2,250.65 crore in the corresponding quarter last year. This was higher than Rs 2,290 crore sales analysts predicted in the ET Now poll. Here are key takeaways from the results.
Profit dropped by half CV segment: Industry-wide slowdown hurt sales at VE Commercial Vehicles (VECV), Eicher’s joint-venture with AB Volvo. Heavy Duty (HD) segment was hit the most. VECV sold 16,936 trucks and buses in the quarter, up 4 per cent YoY. VECV’s Ebitda dropped 18 per cent to Rs 186 crore from Rs 226 crore in the same period last year while profit after tax plunged 43 per cent to Rs 76 crore from Rs 133 crore last year. Revenue from operations rose 9 per cent to Rs 2,818 crore in December quarter from Rs 2,590 crore in the same period last year.
MD & CEO Siddhartha Lal said that while the demand momentum continued in the CV industry, sales were affected especially in HD segment due to change in axle load norms and liquidity crunch.
RE volume hit by price reset: Even as Royal Enfield’s market share saw improvement on a sequential basis, volumes in the quarter were impacted. Royal Enfield sold 193,871 motorcycles in the quarter, registering a decline of 6 per cent from 202,736 motorcycles sold in the same period last year. Lal said that the numbers were temporary impacted due to a price reset. “Factors like increased insurance requirements, rising raw material costs and the subsequent price increase due to regulatory safety requirements impacted the momentum of the industry,” he added.
Lal said his company remained optimistic about the trend of premiumisation in the motorcycling industry.
Global deliveries of 650cc motorcycles soon: During the quarter the company launched the Interceptor 650 and the Continental GT 650 motorcycles in India and other key markets across the globe. The company said that while retail sales have already begun in India, deliveries in the global markets are expected to begin soon.
The 650 twins were also launched in the UK and Europe at the EICMA Motorcycle Show in Milan, Italy and also in Thailand, Indonesia, Brazil, Colombia and Australia.
Source: Economic Times