 "File photo of Eicher Motors Chief Executive Officer Siddhartha Lal (right) and President of Royal Enfield Rudratej Singh at Royal Enfield's new flagship store in New Delhi")
Eicher Motors, maker of Royal Enfield Bullet, nearly doubled its net profit to Rs 245 crore for the quarter ended December 2015 on the back of record sales. Profit for the quarter zoomed 97.5 per cent to Rs 245 crore while revenue grew 55 per cent to Rs 1,284 crore.
Sales volume grew 53 per cent to 125,690 units. The company follows a January-December accounting year but will shift to April-to-March year from coming April. Eicher’s stock zoomed seven per cent to Rs 18,218 on the BSE (formerly Bombay Stock Exchange). The company’s Ebit (earnings before interest and tax) margins touched an all-time high of 26.1 per cent in the quarter, up from 21.8 per cent in same period of 2014.
Siddhartha Lal, managing director & chief executive, said, “Royal Enfield continued with its strong performance in the fourth quarter of 2015, despite being affected by one of the worst floods in Chennai in the last two months of 2015. We lost production of 11,200 motorcycles”. Net profit for the year ended December 2015 rose 56 per cent to Rs 870 crore. Revenue increased 53 per cent to Rs 4,643 crore, helped by 50 per cent increase in volumes. The waiting period for Eicher's motorcycles is three-four months.
Eicher’s consolidated profit, including the commercial vehicle business, increased 76 per cent to Rs 271 crore in the quarter. Consolidated sales revenue rose 46 per cent to Rs 3,248 crore.
