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Eicher Motors gains after Q4 PAT jumps 73% YoY

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Capital Market
Last Updated : May 28 2021 | 11:04 AM IST

Eicher Motors rose 2.01% to Rs 2657.70 after the auto maker reported 72.9% jump in consolidated net profit to Rs 526.14 crore in Q4 FY21 compared with Rs 304.28 crore in Q4 FY20.

Net sales during the quarter increased 33.8% year-on-year (YoY) to Rs 2,930.38 crore. Sequentially, the company's net profit declined 1.2% and net sales rose 4.3% during the quarter.

EBITDA in the fourth quarter was at Rs 634 crore, up 47% as compared to Rs 432 crores in the same quarter of the previous financial year.

Profit before tax in Q4 FY21 stood at Rs 688.59 crore, up by 54.1% from Rs 446.84 crore in Q4 FY20.

The company recorded 26.3% drop in consolidated net profit to Rs 1,346.89 crore on 4.5% decline in net sales to Rs 8,661.56 crore in the year ended 31 March 2021 over the year ended 31 March 2020.

Royal Enfield sold 203,343 motorcycles in the quarter, an increase of 25% from 163,083 motorcycles sold over the same period in FY 2019-20. 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.

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For the quarter, VE Commercial Vehicles (VECV) recorded strong growth of 56% with volumes of 18,167 units against 11,629 units during the same period last year.

Siddhartha Lal, managing director of Eicher Motors, said, "It has been a challenging year for the industry with the COVID-19 pandemic leading to disruption in production, supply chain and retail operations. We remained agile and responded swiftly by reworking our immediate priorities and providing relief to communities as well as ensuring the safety and well-being of our employees, partners and customers.

During the year, there were challenges also 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. We have seen encouraging demand coming from rural as well as urban segments. The launch of the Meteor has been well received by consumers, and has witnessed excellent response. We have also been able to significantly increase our retail market presence in India and globally through this year.

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."

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles which operates in India's commercial vehicle space.

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First Published: May 28 2021 | 10:08 AM IST

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