Eicher Motors announces Rs.2,548 crore profit in the first quarter of FY19

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Eicher Motors has reported its highest-ever total revenue from operations in the first quarter of FY19. The company’s total revenue for the quarter stood at Rs.2,548 crore, while the EBITDA (earnings before interest, taxes, depreciation, and amortisation) touched Rs.810 crore and the net profit after tax came up to Rs.576 crore. In comparison, the company had reported a total revenue of Rs.2,000.6 crore and a net profit after tax of Rs.459.6 crore in the first quarter of FY18.

Profit
Eicher Motors reports total revenue of Rs.2,548 crore for Q1FY19.

Royal Enfield, which is Eicher Motors’ subsidiary, also posted its best-ever performance during the quarter that ended on June 2018. Royal Enfield sold a total of 2,25,286 motorcycles in Q1 of FY19, in comparison to 1,83,731 units during the same period if the previous fiscal.

Royal Enfield had launched the limited-edition Classic 500 Pegasus in May 2018. The model was inspired by the Royal Enfield RE/WD 125 ‘Flying Flea’, which was a World War II motorcycle. The motorcycle was meant to pay homage to the brand’s military heritage. Among the 1,000 units that were totally produced, 250 units of the motorcycle was reserved solely for India. These units were sold through Royal Enfield’s official website. All 250 units were sold out in a mere 178 seconds from when the online booking commenced.

With regard to the CV segment, Eicher Motors’ joint venture with AB Volvo VE Commercial Vehicles (VECV) reported a good performance, which was in-line with the performance witnessed in the CV industry. VECV’s revenue from operations increased by a total of 45% to Rs.2609 crore in Q1FY19 from Rs.1803 crore during the corresponding period in the previous fiscal. The profit after tax also rose from Rs.67 crore to Rs.118 crore.

At the end of the June quarter, Eicher Motors’ market share touched 10.4%, in comparison to 11.9% in the previous financial year. The management of Eicher Motors increased the production guidance for the current financial year to 9,50,000 from 9,00,000, while the CapEx guidance continued to stay constant at Rs.800 crore.

Sources: The Times of India, Financial Express, Money Control

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