Eicher Motors posted a remarkable performance in the first quarter of the current fiscal year (Q1FY24), achieving a net profit of ₹918 crore. This represents an impressive 50 percent growth compared to the ₹610 crore profit reported in the same period last year. The company’s revenue from operations also surged to ₹3,986 crore during the first quarter, up from ₹3,397 crore in the corresponding period of the previous year.
This outstanding Q1 performance marks the best ever for the company and continues a streak of record-breaking revenue and profit for the fourth consecutive quarter. Royal Enfield, a division of Eicher Motors, played a significant role in this success, selling 2,25,368 motorcycles during the first quarter, a notable 21 percent increase from the previous year’s 1,86,032 units.
The management of Eicher Motors expressed its satisfaction with the strong performance of both Royal Enfield and VECV (a joint venture with the Volvo Group). Its credited the success to the popularity of models like the Hunter 350 and Super Meteor 650, which have attracted a global customer base.
The EBITDA margin for the reporting quarter stood at 25.6 percent, a slight improvement from the 24.5 percent recorded in the same period of the previous fiscal year. EBITDA, which stands for earnings before interest, tax, depreciation, and amortisation, is a crucial indicator of a company’s operational performance.
Furthermore, the company has allocated around ₹1,000 crore for capital expenditure in the current fiscal year, with a significant portion being utilized to develop products and sales infrastructure for electric vehicles (EVs).
The company plans to have a modular production capacity of 1.5 lakh units for its electric vehicles.
Industry analysts predict a further improvement in demand for two-wheelers during the upcoming festival season, driven by new product launches and increased exports.
On August 4, Eicher Motors’ shares closed at ₹ 3,359.55 apiece on the NSE, marking a 0.6% decrease from the previous trading day.