Eicher Motors' consolidated net profit slumped 44.2% to Rs 304.28 crore on 11% drop in net sales to Rs 2,190.32 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) tanked 45.5% to Rs 446.84 crore in Q4 March 2020 as against Rs 819.59 crore in Q4 March 2019. Current tax expenses skid 52.6% to Rs 112.55 crore in Q4 March 2020 as against Rs 237.44 crore in Q4 March 2019. The Q4 earnings were announced after market hours on Friday, 12 June 2020.
The EBITDA tumbled 37% to Rs. 432 crore in Q4 March 2020 as compared to Rs 685 crore in the same quarter of the previous financial year. Royal Enfield sold 1,63,083 motorcycles in the quarter, registering a decline of 17% from 1,97,567 motorcycles sold over the same period last year.
The board at its meeting held on 11 March 2020 declared an interim dividend at Rs 125 per equity share for the FY20.
Due to COVID-19 pandemic, the group temporarily suspended the operations in all the units. The COVID-19 has impacted the normal business operations of the group by way of interruption in production, supply chain disruption, unavailability of personnel, closure/lock down of production facilities, retail outlets of dealers etc.
The last quarter of this fiscal was particularly challenging in the wake of the unprecedented coronavirus pandemic. Royal Enfield's manufacturing and retail operations were suspended between 23 March 2020 and 5 May 2020 as per government directives. However, production and sales/supply of goods have commenced during the month of May 2020 with partial capacity. The company has since resumed operations, and more than 90% of its retail network is now operational.
Royal Enfield continued to strengthen its distribution network in India and internationally. During this quarter, Royal Enfield added 100 new studio stores, taking the overall retail touchpoints to 1,521 across India; at 921 dealerships and 600 studio stores. Royal Enfield expanded its international market network during the year 2019-20. Exclusive stores have now almost doubled from 42 stores in 18 countries to 77 stores in 21 countries; 10 stores were added during Q4 FY20.
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Commenting on the Q4 performance, Siddhartha Lal, the managing director of Eicher Motors, has said that, "This has been a tough year overall for the industry, and the global pandemic during the last quarter brought with it unprecedented challenges and disruptive changes. At Eicher Motors, we have witnessed the impact of this situation, but have chosen to focus on the opportunities within these problems. With commitment to our long-term plans, we moved swiftly to tackle the roadblocks, to safeguard our businesses and to do our bit towards relief and support measures. Now, as the lockdown is easing out, we see strong initial customer interest and confidence."
"Both at Royal Enfield and VECV, we have transitioned our entire product portfolio to the new BS-VI emission norms, and also managed to sell our entire BS-IV inventory well ahead of the mandated timeline. Our BS-VI products have received great feedback from customers and we have planned a strong product line-up going forward. We have built our businesses on solid fundamentals. We have a strong balance sheet and cash position, a robust business model with a very focused approach, and an exceptional management team at Royal Enfield and VECV," he added.
For the quarter ended 31 March 2020, VE commercial vehicles (CV) revenue from operations was Rs 2,101 crore, down by 35% from Rs 3,209 crore in the same period last year. EBITDA was Rs 38 crore, down 86% as compared to Rs 274 crore in the corresponding quarter of the previous year. There was a loss of Rs 26 crore as compared to profit after tax of Rs 139 crore during the same period last year. VECV sold 11,629 trucks and buses in the quarter, registering a decline of 45% from 21,010 trucks and buses sold over the same period in the last financial year.
Meanwhile, the board approved 10-for-1 stock split. The company will split each share of face value Rs 10 each into 10 equity shares of face value Re 1 each.
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 (VECV) which operates in India's commercial vehicle space. VECV has a complete range of trucks and buses from 5-55 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.
Shares of Eicher Motors rose 1.86% to Rs 17,174.10 on BSE. The scrip hovered in the range of Rs 16,566.40 to Rs 17,367.85 so far.
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