Domestic two-wheeler and commercial vehicle manufacturer, Eicher Motors has reported healthy growth for Q2 FY2019 (July-September 2018), with revenue at Rs 2,408 crore, an increase of 11 percent YoY. The EBITDA was Rs 729 crore (+7%), PAT at Rs 549 crore (+6%).
Royal Enfield, the company's two-wheeler business, sold 209,963 motorcycles in Q2 FY2019, up 4 percent YoY. Commenting on Royal Enfield’s performance, Siddhartha Lal, MD and CEO, Eicher Motors, said, “Despite several challenges that came up during the quarter, Royal Enfield recorded a strong performance in Q2 FY2019. The highlight of the quarter was the global media ride and launch of our 650 Twins at Santa Cruz, California North America in September 2018. Both these motorcycles – Interceptor 650 and Continental GT 650 – were extremely well received by the global motorcycle press who appreciated the simple design and fun riding experience."
"The 650 Twins are being introduced across our key markets in a phased manner globally. We launched the motorcycles in Europe at the EICMA Motor Show in Milan last week, and we are now all set to launch these motorcycles here in India later this week,” he added.
“This year at EICMA 2018, we showcased the ‘Concept KX’ prototype – a V-Twin motorcycle developed by Royal Enfield's design and engineering teams in India and the UK. The Concept KX is inspired by Royal Enfield's original Model KX of the late 1930s and has been developed from scratch in just six months this year,” Lal added.
In August 2018, Royal Enfield launched the Classic Signals 350, which is also the first Royal Enfield motorcycle in India to feature dual-channel ABS. The company plans to introduce ABS across all its motorcycle models in a phased manner in the coming months, well ahead of the regulatory timeline.
VECV profit grows 49%
In the CV business, VE Commercial Vehicles (VECV) – Eicher’s joint-venture with AB Volvo – continues to perform well. In Q2 FY2019, VECV’s revenue from operations rose was Rs 2,966 crore, a growth of 27 percent YoY; EBITDA was Rs 267 crore (+24%) and PAT at Rs 142 crore, an increase of 49 percent YoY.
VECV sold 18,696 trucks and buses in the quarter, growing by over 24 percent YoY. The growth momentum continued to be driven by the strong demand from infrastructure development and mining activities. The company says despite the introduction of new axle regulations in July 2018, replacement demand remains strong with focus shifting to truck productivity and overall cost of ownership.
“In Q2 FY2019, VECV reached a significant milestone as it celebrated 10 years of its successful partnership with Volvo AB and to mark the occasion, Volvo AB held their quarterly board meeting in Delhi in October 2018. We see a strong growth momentum in the industry and a growing demand for modernised commercial vehicle fleet from the transporters. To cater to this, we have announced our second manufacturing plant in Bhopal, Madhya Pradesh. The new plant will be set up with an investment of Rs 400 crore and will have a capacity of 40,000 vehicles per annum. The overall outlook for VECV and the industry remains strong and we are well prepared to lead the modernisation in the industry and meet the BS VI emission norms,” added Lal.