New Delhi, November 12, 2018: Eicher Motors Limited (EML) today announced its unaudited consolidated financial results for the quarter ended September 30, 2018.
In the quarter ended September 2018, Royal Enfield’s total revenue from operations rose 11% to Rs. 2,408 crore, compared to the same period last year; EBITDA was at Rs. 729 crore, up by 7% from Rs. 683 crore for the same period last year; Profit After Tax grew by 6% to Rs. 549 crores from Rs. 518 crores in the same period last year. Royal Enfield sold 209,963 motorcycles in the quarter, registering a growth of 4% from 202,744 motorcycles sold in the same period last year.
Commenting on Royal Enfield’s performance, Siddhartha Lal, Managing Director and CEO Eicher Motors Ltd, said, “Despite several challenges that came up during the quarter, Royal Enfield recorded a strong performance in Q2 2019. 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. Participants at Rider Mania can also book a test ride by pre-registering on the website.”
“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. 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,” Siddhartha added
In August 2018, Royal Enfield launched the Classic Signals 350 in two colours – Airborne Blue and Stormrider Sand. Celebrating 65 years of association with the Indian Armed Forces, the Classic Signals is inspired by the Royal Enfields in service of the nation, and the men and women who ride them. The Classic Signals is Royal Enfield’s first motorcycle in India to feature dual channel Anti Lock Braking System (ABS) and has received an encouraging response from customers. Royal Enfield will introduce ABS across all its motorcycle models in a phased manner in the coming months, well ahead of the regulatory timeline.
In the international markets, Royal Enfield continues to expand its footprint in South East Asia. Royal Enfield opened its third store in Thailand at Chiang Mai. Towards growing the Royal Enfield community outside India, Royal Enfield organised the second edition of REUNION in Colombia at Quindio and received good participation from the customers. In September, Royal Enfield raced the custom built Bonneville racer at the Salt Flats in Utah, USA at a record speed of 157 miles per hour, demonstrating the versatility and capability of the brand new Twins’ engine. Royal Enfield built the motorcycle together with S&S Cycle and Harris Performance – further strengthening the reputation of Royal Enfield motorcycles as the perfect canvas for customisation.
In the Commercial Vehicles (CV) segment, VE Commercial Vehicles (VECV) – Eicher’s joint-venture with AB Volvo – continues to perform well. VECV’s revenue from operations rose by 27% to Rs. 2,966 crores from Rs. 2,339 crores in the same period last year; EBITDA grew by 24% to Rs. 267 crores from Rs. 215 crores in the same period last year; Profit After Tax rose by 49% to Rs. 142 crores from Rs. 95 crores last year.
VECV sold 18,696 trucks and buses in the quarter, growing 24% over the same period last year. The growth momentum continues driven by the strong demand from infrastructure development and mining activities. Despite the introduction of new axle regulations in July 2018, the replacement demand remains strong with focus shifting to truck productivity and overall cost of ownership. VECV’s Pro series of modern trucks continue to do well, offering excellent value to transporters.
“In Q2 2019, VECV reached a significant milestone as itcelebrated ten 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,” saidSiddhartha. “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 crores 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.”