Eicher Motors posted a consolidated net profit of Rs 237 crore in Q1 FY22 compared with net loss of Rs 55.18 crore in Q1 FY21.
For the quarter ended 30 June 2021, Eicher Motors' total revenue from operations was recorded at Rs 1,974 crore, up 141% compared with Rs 818 crore in the corresponding quarter of FY 2020-21. EBITDA was at Rs 363 crore compared with Rs 4 crore in the same quarter of the previous financial year. Pre-tax profit stood at Rs 327 crore in Q1 FY22 as against a pre-tax loss of Rs 50.67 crore in Q1 FY21.
Royal Enfield sold 122,170 motorcycles in the quarter, an increase of 109% from 58,383 motorcycles sold over the same period in FY 2020-21.
Commenting on Eicher Motors' performance, Siddhartha Lal, MD of Eicher Motors said, With the second wave of the pandemic sweeping across the country and making its impact felt through the economic cycle, the previous quarter presented a challenging environment for the automotive sector overall. However, we continue to believe in our strong business fundamentals and are positive about the long-term prospects and performance of both Royal Enfield and VECV. Despite the unprecedented situation, we stayed resilient and delivered the strongest ever quarter for Royal Enfield in international markets. In India, our bookings saw an uptick in the month of June as local lockdowns and restrictions were gradually lifted across the country. The global shortage of semiconductors continues to be a concern, and is likely to hamper production for the ongoing quarter, and possibly through the rest of the year as well. While the economy continues to recover, we remain optimistic and committed to our strategic focus areas moving forward.
Royal Enfield ended the quarter with its best ever performance in international markets with total exports at 17,493 units, more than 400% increase over 3,444 in the same period last year and an 83% increase over 9,572 in Q1 of FY20. The company also announced the commencement of local assembly of motorcycles in Colombia, the third biggest motorcycle market in Latin America, in partnership with its local distributor.
During the quarter, Royal Enfield expanded its presence in international markets and commenced operations in Singapore and the Netherlands with the launch of standalone, flagship stores. The stores showcase the entire range of Royal Enfield motorcycles, including the Interceptor 650, Continental GT 650, Himalayan, and the Classic 350.
Speaking on Royal Enfield's performance, Vinod K. Dasari, CEO of Royal Enfield said, Despite challenging market conditions, we continued to stay committed to our core objective of being a truly global motorcycling brand. We registered our best ever quarterly performance in international markets with a year-on-year increase of more than 400%, on the back of strong performance in the Americas. We are investing in CKD facility units to further strengthen our presence in key potential markets. After Argentina, we have recently set up a CKD assembly unit in Colombia. We also marked our entry into the Netherlands and Singapore with our flagship, exclusive stores. Constraints on account of local and global supply chain disruptions continue to impact us, but we are working closely with our suppliers to quickly resolve them. With a growing preference for personal mobility among consumers, improving economy and demand sentiment, and our strong product pipeline, we are optimistic about stronger recovery once supply chain stabilizes during the second half of the year.
VE Commercial Vehicles (VECV), the unlisted subsidiary of Eicher Motors clocked revenue from operations of Rs 1,639 crore, up by 156% from Rs 641 crore in the same period last year. EBITDA for the quarter was at Rs 18 crore which is significantly higher as compared to a EBITDA loss of Rs 72 crore in the corresponding quarter of the previous year. The company posted a net loss of Rs 72 crore for the quarter, as compared to a net loss of Rs 120 crores for the same period last year. VECV sold 5,806 trucks and buses in the quarter, a notable increase of 173% from 2,129 trucks and buses sold over the same period in the last financial year.
Speaking on VECV's performance Vinod Aggarwal, MD and CEO VECV said Last quarter has been very challenging for the CV industry as well as VECV. With lockdowns and cautious approach by financiers, retail of vehicles was severely impacted. We focused on keeping the channel partners healthy to tide over the difficulties faced by them. In line with the VECV spirit of partnership, we provided soft loans to our dealers along with medical and financial support to their employees. We also extended the warranty period on Eicher Trucks and Buses to account for lockdown disruptions for our customers. With the second wave receding and vaccination in full swing, we expect the CV industry to bounce back as customers start to replace old trucks and buses with modern fuel-efficient and highly productive vehicles.
Meanwhile, Eicher Motors announced that Vinod K Dasari, CEO of Royal Enfield and director (Whole Time) of the company has step down from his post with effect from 13 Aug 2021. Vinod's decision to move is with an intention to dedicate time and energy to pursue his personal passion and ambition in affordable healthcare.
B Govindarajan will take on the responsibility of leading Royal Enfield. Effective from 18 August he will be inducted as a wholetime director on the board of Eicher Motors and will take on as executive director of Royal Enfield. Govind has been the Chief Operating Officer at Royal Enfield since 2013.
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.
Shares of Eicher Motors were trading 2.46% lower at Rs 2,551 on BSE
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