Eicher Motors rallies after Q2 PAT rises 8% YoY to Rs 1,100 cr

Eicher Motors jumped 7.91% to Rs 4,952.15 after the company's consolidated net profit increased 8.27% to Rs 1,100.33 crore on 3.8% increase in revenue from operations to Rs 4,186.38 crore in Q2 FY25 over Q2 FY24.

Profit before share of profit of joint venture and tax rose 3.53% YoY to Rs 1,248.30 crore in Q2 FY25.

EBITDA increased marginally 0.09% to Rs 1,088 crore in Q2 FY25 as compared with Rs 1,087 crore in Q2 FY24.

During the quarter, Royal Enfield recorded sales of 2,25,317 motorcycles as compared to 2,29,496 motorcycles sold during the same period in FY 2023-24.

For Q2 FY 2024-25, VE Commercial Vehicles (VECV)s revenue from operations was Rs 5,538 crore, up by 8.0% over the previous years revenue of Rs 5,126 crore. VECV recorded sales of 20,774 vehicles in the second quarter over 19,551 vehicles last year.

Siddhartha Lal, managing director, Eicher Motors, said, During this quarter, we have continued to sustain the momentum both at Royal Enfield and VECV. At EICMA, earlier this month, we launched two motorcycles on our 650-Twin platform; the Bear 650, and the Classic 650. In addition to this, Royal Enfield marked its foray into electric mobility with a new EV brand - the Flying Flea.

With an intent to disrupt and grow the electric motorcycle segment, we are approaching it with the same singularity, focus and unconventionality with which we have grown and energized the global mid-size segment over the last several years.

Under the Flying Flea we will have a portfolio of differentiated electric motorcycles for city plus mobility. On the commercial vehicle front, VE Commercial Vehicles delivered its best Q2 ever, with strengthened market shares in truck segments. This is commendable against the backdrop of lower industry volumes as compared to Q2 of last year.

B. Govindarajan, CEO - Royal Enfield and whole-time director, EML, said, This quarter we launched two stellar motorcycles - the Guerrilla 450 and the 2024 Classic 350 in an all new avatar and response to both these motorcycles has been remarkable.

We have also made significant progress on expanding and strengthening our footprint outside India as we debuted the brand in Bangladesh with our new flagship store in Dhaka, and a manufacturing and assembly unit in the country. We are also setting up a second CKD in Brazil later this year.

Basis the strong legwork that we put in during Q2 this year, we were able to achieve a very special milestone for Royal Enfield in terms of our festive sales performance in October. We outperformed all our previous monthly sales performance and achieved more than 1,00,000 sales in a single month. These initiatives underscore our commitment to our long term strategic goals and to continue delivering pure motorcycling experiences across the globe.

Vinod Aggarwal, MD and CEO - VECV said, VECV delivered its highest ever second quarter sales during Q2 FY25 growing 6.2% over Q2 FY24 and attaining leadership in the Light and Medium Duty (LMD) segment during the quarter. This growth was against a drop in CV industry volumes of 10.8% in the same period and stands as a testament to our broad product range backed by fast-expanding network coverage focused on delivering uptime to customers. Margins remained under pressure in a competitive market as we successfully continued to invest in growing our Heavy Duty truck presence. We took another step in our sustainability journey, signing a MoU for deployment of 500 Eicher Pro 6055 LNG trucks.

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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