Eicher Motors net profit in Q1 surges 158% to Rs 611 crore on higher sales

Eicher Motors (EML), which makes Royal Enfield motorcycles, has posted a 158 per cent rise in net profit for the first quarter of financial year 2022-23 to Rs 611 crore, on account of higher sales. It had posted Rs 237-crore net profit during the same period last year.  

For the quarter ended June 30, 2022, Eicher Motors’ total revenue from operations was Rs 3,397 crore, up 72 per cent compared to Rs 1,974 crore in the corresponding quarter of last year. The company’s earnings before interest, tax, depreciation and ammortisation (Ebitda) was seen at Rs 831 crore as compared to Rs 363 crore in the same quarter of the previous financial year.

Royal Enfield sold 186,032 motorcycles during the quarter, posting an increase of 52 per cent from 122,170 motorcycles sold over the same period in FY22.

“Our international volumes continued to record consistent growth with more than 60 per cent increase as compared to the previous year. We have registered the highest-ever quarterly revenues and Ebitda on the back of record international sales,” said Siddhartha Lal, managing director (MD), Eicher Motors.

“VECV, our commercial vehicle joint venture with the Volvo Group, recorded its highest-ever first quarter volumes. The quarter also witnessed inauguration of the first electric city bus delivered to Chandigarh,” he said

“We recently launched the Hunter 350 to some spectacular reception from Indian and global audiences. As we begin retail in India, we are confident that the Hunter 350 will open up a new market for us, thereby bringing in new customers to Royal Enfield.

With products like the Scram 411 and Hunter 350, we are building refreshed formats to experience pure motorcycling,” said B. Govindarajan, chief executive officer (CEO), Royal Enfield and whole-time director, EML.

He added, “With the upcoming festive season, uptick in market and consumer sentiment, improvement in supply chain and parts availability, we are confident about the sustained growth for Royal Enfield.”