Eicher Motors' Q4 net rises 73% to Rs 526 cr, revenue at all-time high

Eicher Motors posted a consolidated net profit of Rs 526.14 crore for the March quarter (Q4FY21). This is an increase of 73 per cent from Rs 304 crore logged in the corresponding quarter last year.

The auto major's total revenue from operations were at all time high of Rs 2,940.3 crore for the quarter under review, up 33 per cent from Rs 2,208.1 crore in the same period last year.

The company's board recommended a final dividend of Rs 17 per share for the financial year 2020-21, aggregating to Rs 464.67 crore.

Royal Enfield sold 203,343 motorcycles during the quarter, an increase of 25 per cent from 163,083 motorcycles sold over the same period in FY20.

On a standalone basis, company's net profit increased 35 per cent to Rs 468 crore as against Rs 346 crore in the same quarter last year.

The operating profit or earnings before interest, tax, deprecitation and amortisation (EBITDA) stood at Rs 634 crore, up 47 per cent as compared to Rs 432 crore in the same quarter of the previous financial year.

Commenting on Eicher Motors’ performance, Siddhartha Lal, Managing Director of the company said, “During the year, there were challenges on account of factors such as supply chain constraints and commodity price increase. However, demand continues to be good. Royal Enfield witnessed very good pick up in the second half of the year, and registered a strong performance in Q4. 

"The commercial vehicle industry also showed equal resilience and saw good recovery in the latter half of the year. VECV gained market share across segments. In the heavy duty segment, VECV volume grew by 6% in FY21 compared to last year against a decline of 21% in industry volume. Overall, both at Royal Enfield and at VECV, we have managed to tide over a tough year, and despite imminent challenges that persist, we remain steadfast on our strategic long term goals," he said.

During the year, Royal Enfield’s retail footprint in India increased from 1,521 stores across 1,200 cities to 2,056 stores across 1,750 cities. With the launch of more than 100 dealerships and more than 430 studio stores in India during FY 2020-21, Royal Enfield has further grown its network across urban, as well as rural markets.

For the March quarter, VECV’s revenue from operations was Rs 3,602 crore, up 71.4 per cent from Rs 2,101 crore during the corresponding quarter last year. EBITDA was Rs 320 crores, significantly higher as compared to Rs 37 crore in the same period last year. 

Through various measures, addressing revenue and cost, VECV was able to grow the EBITDA margin to 8.9 per cent during the quarter, from 1.8 per cent during the samer period last year. 

Profit After Tax for the quarter was Rs 127 crore as against a loss of Rs 26 crores in March 2020 quarter. 

For the quarter, VECV recorded strong growth of 56 per cent with volumes of 18,167 units against 11,629 units during the same period last year.

On Thursday, the company's stock closed lower at Rs 2,610.8, down nearly 1 per cent on NSE.