Eicher Motor reports highest ever profit after tax at Rs657 crore in Q2
The company's overall performance has been very encouraging and it has witnessed great uptick in the momentum with the launch of the new Hunter 350
Eicher Motors has reported its highest ever growth in consolidated profit after tax (PAT) of 76.1 percent at Rs 657 crore in the second quarter ended September 30, 2022. The maker of Royal Enfield motorbikes as well as VE trucks and buses had posted a profit after tax of Rs373 crore during the same period last year.
Meanwhile its consolidated revenue from operations for the quarter was recorded at Rs3,519 crore, up 56.4 percent, as compared to Rs 2,250 crore in the corresponding quarter of FY 2021-22.
Company's Earnings Before Interest, Taxes, Depreciation and Amortisation EBITDA in Q2 FY 2022-2023 stood at Rs822 crore, up 74.9 percent as compared to Rs470 crore in the same quarter of the previous financial year.
On the Capex front, the company is planning to invest Rs750 crore in FY23 out of which it has already invested Rs 300 crore in the first half.
According to Siddhartha Lal, Managing Director, Eicher Motors, at the halfway mark, the company's overall performance has been very encouraging and it has witnessed great uptick in the momentum with the launch of the new Hunter 350, launched in September. In addition, the company showcased its new cruiser, the Super Meteor 650 at EICMA earlier this week.
"This motorcycle immensely elevates our portfolio in the 650 twin category. On the commercial vehicles side, VECV delivered its first large order of 40 Skyline Pro E electric buses to the prestigious city of Chandigarh. During the quarter we also strengthened our market share in the heavy-duty (HD) trucks and buses segment while launching a slate of new products and improving our distribution reach. At EML, our business performance has been quite promising, and we continue to focus on the next stage of our growth with a robust ESG vision," Lal added.
During the quarter under review, Royal Enfield sold 203,451 motorcycles, an increase of 64.7 percent from 123,515 motorcycles sold over the same period in FY 2021-22. In October, the company clocked its highest ever sales of motorcycles in a month at 80,792 units and growth of 79 percent over the same period last year.
B. Govindarajan, CEO - Royal Enfield and Wholetime Director, EML said, “Our newest motorcycle on the block -- the remixed Roadster, Hunter 350 -- has seen extremely positive consumer response. We have registered healthy growth in the festive season and are confident of continuing this trend over the next quarter as well. We are gearing up to bring great motorcycles and motorcycling experiences to our consumers. While we have unveiled the Super Meteor 650 in Milan this week, we are also preparing for a spectacular comeback of Rider Mania later this month.”
As per the company management, the commercial vehicle industry will make good progress in FY23, and in some segments like 5-15 tonnes it will see a new peak. "After every recession, the industry touches a new peak in 2-3 years. We expect the industry to touch a new peak in 2-3 years," said Vinod Aggarwal, MD and CEO VECV.
He further stated that during the second quarter VECV strengthened market share particularly in heavy duty truck and bus segments for both Eicher and Volvo brands. "Vehicle sales for the first half stand at 35,085 vehicles marking a growth of 67.6 percent over corresponding period last year. During the quarter we delivered and operationalized 40 Eicher Skyline Pro E electric buses in Chandigarh. We continued to expand our product range to meet the customer needs in various truck and bus applications for both domestic and export markets," he added.
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