Eicher Motors Q2 Results: Best Ever Second Quarter Revenue, Profitability Muted
Eicher Motors' revenue from operations during the second quarter climbed 3.6% to Rs 4,263 crore.
Eicher Motors Ltd. clocked its highest ever second-quarter revenue in July-September 2024 even as operational profitability remained stagnant.
Consolidated net profit of the Royal Enfield parent rose 8.3% over the year-ago period to Rs 1,100 crore in the three months ended 30 September, even as revenue increased 3.6% to Rs 4,263 crore, according to a filing on Wednesday. Analysts polled by Bloomberg had estimated the topline at Rs 4,414 crore and the bottomline at Rs 1,086 crore.
Eicher Motors Q2 FY25 Results (Consolidated, YoY)
Revenue up 3.6% at Rs 4,263 crore (Estimate: Rs 4,414 crore)
EBITDA flat at Rs 1,088 crore (Estimate: Rs 1,158 crore)
EBITDA margin up 90 basis points at 25.5% (Estimate: 26.2%)
Net profit up 8.3% at Rs 1,100 crore (Estimate: Rs 1,086 crore)
One basis point is one hundredth of a percentage point.
The quarterly performance came on the back of a decline in sales at its motorcycle unit and a volume increase at the commercial vehicle unit. Margins remained muted due to a competitive environment in the motorcycle space, the company indicated.
During July-September, Royal Enfield recorded sales of 2,25,317 motorcycles as against 2,29,496 units in the year-ago period. VE Commercial Vehicles Ltd. clocked 20,774 units as against 19,551 last year.
Looking ahead, the company sees demand for commercial vehicles rebounding in the second half of the fiscal on the back of a healthy monsoon. Royal Enfield plans to set up a second assembly plant in Brazil by December. The Classic 650, a crucial product, is likely to go on sale in India in January 2025.
“During this quarter, we have continued to sustain the momentum both at Royal Enfield and VECV,” Siddhartha Lal, managing director at the Chennai-based automaker, said in a media statement accompanying the earnings. “At EICMA, earlier this month, we launched two new motorcycles on our 650 cc platform. In addition to this, Royal Enfield marked its foray into electric mobility with a new EV brand—the Flying Flea.”
“On the commercial vehicle front, VE Commercial Vehicles delivered its best Q2 ever, with strengthened market shares in truck segments.”
On Wednesday, Eicher Motors shares fell 3.15% to Rs 4,589.10 apiece on the BSE even as the benchmark Sensex ended the day 1.25% lower at 77,690.95 points. The quarterly results were declared after market hours.
