On a consolidated basis, Eicher Motors' net profit rose 6.79% to Rs 532.59 crore on 19.28% increase in revenue from operations at Rs 2,828.26 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) advanced 8.98% to Rs 701.94 crore in Q3 December 2020 as against Rs 644.09 crore in Q3 December 2019. Total tax expense for the quarter jumped 16.47% to Rs 169.35 crore as against Rs 145.39 crore in Q3 December 2019. EBITDA stood at Rs 672 crore in Q3 FY21, growing 13% as against Rs 592 crore in the same quarter of the previous financial year.
Royal Enfield sold 1.99 lakh motorcycles in the quarter, registering an increase of 5% from 1.89 lakh motorcycles sold over the same period in FY 2019-20. To bolster its presence in international markets, Royal Enfield announced entry into Japan with its first standalone, flagship store in Tokyo. Located in Suginami-Tokyo, the newly inaugurated store will have the complete suite of Royal Enfield motorcycles, apparel and accessories, in addition to spares and service. In addition to this, 13 new exclusive stores were opened with focus on Latin American and ASEAN markets - Thailand, Argentina and Columbia.
Commenting on Q3 performance, Siddhartha Lal, the managing director of Eicher Motors, has said that: "The third quarter has seen steady business growth and encouraging performance across the board. Consumer sentiment and demand have improved, and this is reflected in our volumes for the quarter. At VECV, demand for commercial vehicles has been improving sequentially and we have seen encouraging performance during the quarter. At Royal Enfield as well, we saw encouraging pick up in demand and bookings over the quarter. This quarter, we launched the Meteor 350, an easy and accessible cruiser in India and across Europe, Thailand and Australia. The motorcycle has received excellent feedback from experts and consumers alike. In a bid to further grow our international markets, we launched our first flagship store in Tokyo, Japan, becoming the first Indian premium motorcycle brand to set up a standalone store in Japan. As we ride into 2021, we are very happy to pin yet another significant milestone on our journey, as this year marks the 120th year of the brand. We have several exciting initiatives planned to celebrate this incredible journey of pure motorcycling."
For the quarter ended 31 December 2020, VE Commercial Vehicles (VECV)'s revenue from operations jumped 23.9% to Rs 2,680 crore as against Rs 2,164 crore in Q3 FY20. The EBITDA margin improved to 8.6% for the quarter as against 6.4% during the corresponding quarter for the last year due to stringent cost reduction measures being undertaken. VECV recorded a profit of Rs 58 crores, soaring 89% during this quarter over a profit of Rs 30 crore in Q3 FY20.
Speaking on VECV's performance, Vinod Aggarwal, the managing director (MD) and chief executive officer (CEO) of VECV, has stated that: "With clear signs of economic revival, the CV industry is on the recovery path. Based on that, it is heartening to note that the truck segment has grown in Q3 over the corresponding period in the previous year. Heavy duty trucks 18.5T and above grew by 13% in Q3 and light and medium duty trucks 5 to 16T grew by 16%. However, the bus segment continues to remain sluggish with a drop of 83% in Q3 as schools remain mostly closed and low inter-state movement of buses. While the overall CV industry (3.5T GVW and above) declined by 52% YTD till December 2020, VECV sales declined by 38% for the same period. Strengthened customer connect initiatives and strong market acceptance of our BS VI range has helped us gain market share across segments of LMD, HD and Bus," he added.
Eicher Motors fell 1.83% to Rs 2,893.90. 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.
Meanwhile, the board has re-appointed Siddhartha Lal as the managing director of the company with effect from 1 May 2021 for a term of five years, subject to requisite approvals of the shareholders at the ensuing Annual General Meeting and the Central Government.
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