Eicher Motors advanced 2.31% to Rs 2,580.10 after the company's consolidated net profit jumped 8.69% to Rs 373.20 crore on a 5.43% increase in total revenue from operations to Rs 2,249.56 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, EBITDA fell marginally to Rs 470 crore as compared to Rs 471 crore in the same quarter of the previous financial year, recording a fall of 0.21% Y-o-Y (year-on-year). Royal Enfield sold 1,23,515 motorcycles during the quarter, registering a decline of 17.2% from 1,49,120 motorcycles sold over the same period in FY 2020-21.
Commenting on the Q2 performance, Siddhartha Lal, the managing director (MD) of Eicher Motors, said, "The second quarter of the FY 2022 saw a remarkable performance by Royal Enfield in international markets with a growth of more than 130% over the corresponding period last year. Our consistent growth in volumes and global retail presence is testament to the company being on track to realise its vision of becoming the first premium global consumer brand from India. We strengthened our product portfolio with the launch of the all new Classic 350."
"The motorcycle takes forward the legacy of its legendary predecessor while significantly elevating the ride experience. The all-new Classic 350 has received resounding response from consumers across the country. At VE Commercial Vehicles, we continued to deliver on our sustained growth momentum backed by a robust recovery in HD, LMD and Bus segments. Overall, with the market picking up over the festive season, consumer sentiment significantly improving over the year, we see that demand continues to be strong and outstripping supply. With the semiconductor and supply chain issue expected to ease off over the next quarter, we are optimistic and poised for growth."
The quarter marked the launch of the all-new Royal Enfield Classic 350, powered by the J-series engine and is available in five new variants with 11 colourways. The motorcycle, launched in India, will soon debut across global markets as well.
For the quarter ended 30 September 2021, VECV's revenue from operations was at Rs 3,153 crore, growing 80% from Rs 1,753 crore in the same period last year. EBITDA profit stood at Rs 170 crore as against a profit of Rs 118 crore last year in the corresponding quarter. Profit after tax was at Rs 18 crore as compared to a loss of Rs 7.20 crore last year. VECV registered an 85% increase in sales to 15,134 units during the quarter over 8,167 units in the Q2 of last year.
Speaking on VECV's performance, Vinod Aggarwal, the managing director (MD) and the chief executive officer (CEO) of VECV division, said, "With a focused approach, we have been able to achieve a growth of 85% in volumes in Q2 despite challenges on the supply side. CV industry is likely to grow based on pent up replacement demand as well as demand of construction and infrastructure related trucks. With a strong product portfolio and focus on retail excellence, we are in a good position to continue our growth path. Another highlight in last quarter was the launch of the state of the art new line up of high end premium Volvo Heavy Duty trucks suitable for rigorous mining, construction and long-haul applications that are designed to deliver higher operational efficiency increasing productivity and profitability for the customers."
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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