Eicher Motors Q2 results: Net profit rises 76% to Rs 657 cr, revenue up 56%

Eicher Motors recorded a 56 per cent increase in revenue from operations at Rs 3,519 crore

Royal Enfield maker Eicher Motors logged its highest-ever net profit in the second quarter of the financial year (Q2FY23), seeing a 76 per cent rise in net profit to Rs 657 crore, compared to a Rs 373-crore profit during the same period last year on account of improved sales.

The firm also recorded a 56 per cent increase in revenue from operations at Rs 3,519 crore, its highest ever, compared to Rs 2,250 crore in the corresponding quarter of FY22. The company’s earnings before interest, taxes, depreciation, and amortization (Ebitda) was also up 75 per cent to Rs 822 crore against Rs 470 crore in FY22.

Royal Enfield, made by Eicher Motors, sold 203,451 units in the quarter, a 65 per cent increase from 123,515 motorcycles sold over the same period in FY22. 

“We have seen the highest ever revenue from operations and profit after tax. We started the quarter with the launch of Hunter 350. The festival season brought in strong sales for Eicher Motors,” said said B. Govindarajan, chief executive officer- Royal Enfield and Wholetime Director, EML. He said that the company is looking at a capital expenditure of Rs 750 crore during the current financial year, out of which over Rs 300 crore is already deployed.

On electric vehicles, the company is likely to see its first product in the next three years. “We believe EV is the future and in our understanding, it is a few years away. First product may come three years down the road,” he added. 

“At the halfway mark, our overall performance has been very encouraging. We have witnessed great uptick with the launch of new Hunter 350. Further, we are super happy at having showcased our spectacular new cruiser, the Super Meteor 650 at EICMA, earlier this week. This elevates our portfolio in the 650 twin category,” said Siddhartha Lal, managing director, Eicher Motors.

“On the commercial vehicles side, Volvo Eicher Commercial Vehicles (VECV) delivered its first large order of 40 Skyline Pro E electric buses to Chandigarh. We also strengthened our market share in the heavy-duty trucks and buses segment while launching a slate of new products and improving our distribution reach. At EML, our business performance has been quite promising and we continue to focus on the next stage of our growth with a robust ESG vision,” he added.

“In this quarter, we have seen excellent performance, and registered 65 per cent growth over the corresponding period last year, with motorcycles across the portfolio showing uptick in demand,” said Govindarajan.

Driven by the festival season, Eicher Motors registered its highest ever sales in a month in October, selling 80,792 units and seeing a growth of 79 per cent over the same period last year. “We are gearing up to bring great motorcycles to our consumers. While we have unveiled the Super Meteor 650 in Milan this week, we are also preparing for a spectacular comeback of Rider Mania later this month,” Govindarajan added. At VECV, vehicle sales for the first half stand at 35,085 vehicles marking a growth of 68 per cent over corresponding period last year.