Shares of Royal Enfield motorcycle maker – Eicher Motors – rose as much 4 per cent to hit an intraday high of Rs 2,709.20 a day after it reported its March quarter earnings. Eicher Motors’ net profit in March quarter jumped 73 per cent to Rs 526 crore from Rs 304 crore during the same period last year. During the quarter, Eicher Motors revenue from operations advanced 33 per cent to an all-time high of Rs 2,940 crore versus Rs 2,208 crore during the corresponding period a year ago. Its EBITDA (earnings before interest, tax, depreciation and amortization) also known as operating profit came in at Rs 634 crore. (Track Eicher Motors share price here)
For the year ended March 31, 2021, Eicher Motors recorded total revenue from operations at Rs 8,720 crore, EBITDA at Rs 1,781 crore and profit after tax at Rs 1,347 crore, Eicher Motors said in a stock exchange filing.
“During the year, Royal Enfield’s retail footprint in India increased from 1,521 stores across 1,200 cities to 2,056 stores across 1,750 cities. With the launch of more than 100 dealerships and more than 430 studio stores in India during FY 2020-21, Royal Enfield has further grown its network across urban, as well as rural markets. Internationally, the company now has more than 130 exclusive stores, and a retail footprint of over 760 stores in more than 60 countries. Last year saw Royal Enfield foray into new markets such as Japan, Cambodia, Costa Rica, and Dominican Republic.
The company also launched its first CKD unit (completely knocked down), in Buenos Aires, Argentina during the year.
“It has been a challenging year for the industry with the COVID-19 pandemic leading to disruption in production, supply chain and retail operations. We remained agile and responded swiftly by reworking our immediate priorities and providing relief to communities as well as ensuring the safety and well-being of our employees, partners and customers,” Siddhartha Lal, Managing Director of Eicher Motors said in a press release.
“During the year, there were challenges also on account of factors such as supply chain constraints and commodity price increase. However, demand continues to be good. Royal Enfield witnessed very good pick up in the second half of the year, and registered a strong performance in Q4. We have seen encouraging demand coming from rural as well as urban segments,” Mr Lal added.
For the quarter ended 31 March, 2021, VECV’s revenue from operations was Rs. 3,602 crores, up 71.4 per cent from Rs 2,101 crore during the corresponding quarter last year. EBITDA was Rs 320 crore, significantly higher as compared to Rs 37 crore in the same period last year, Eicher Motors said.
As of 12:15 pm, Eicher Motors shares traded 1.97 per cent higher at Rs 2,657, outperforming the Sensex which was up 0.56 per cent.