Eicher: Gaining from sharp product focus

Operating profit margin sustained at over 30%; net profit continues to grow at 31%

Even as the auto industry is headed for some readjustments in profitability as input costs are once again on the rise, Eicher Motors’ ability to sustain the 30% operating profit margin in the March quarter (Q4) is commendable. This indicates if rightly invested in a good product line and quality is maintained, demand follows and customers tend to remain loyal. That’s the key takeaway from Eicher’s Q4 results. 

Riding on a neat 20% increase in volumes for its Royal Enfield motorcycles and 12.6% growth for its commercial vehicles, net revenue at Rs 1,888 crore in Q4 grew by 23% year-on-year