Two-wheeler and commercial vehicles manufacturer,
Eicher Motors registered a net profit of Rs343.34cr for the quarter ended September 2020 (Q2FY21), compared to a profit of Rs572.69cr a year ago same period, declining by 40% yoy. EBITDA was at Rs471cr, down 13% as compared to Rs541cr in the same quarter of the previous financial year.
Revenue from operations stood at Rs2,133.60cr in the quarter under review, contracting by 2.69% from 2,192cr in the corresponding period of the previous year.
Siddhartha Lal, Managing Director of Eicher Motors said, "This quarter, we witnessed healthy demand and pick-up in business activities in the automotive industry. It has been encouraging for our motorcycle business at Royal Enfield as we have seen increased revival in consumer sentiment and demand. We have a robust order book and booking numbers are ahead of pre-covid levels."
In the quarter, the company sold 149,120 of Royal Enfield, declining by 9% from 163,390 motorcycles sold over the same period in FY 2019-20.
Talking about RE sales, Vinod K. Dasari, CEO, Royal Enfield said, “At Royal Enfield, consumer demand and our order books have been growing consistently since June this year, and we are happy to report that we are ahead of pre-covid levels of bookings."
Dasari further added, "We recently launched the Royal Enfield Meteor 350 along with Make It Yours - a first-of-its-kind initiative in the two-wheeler industry which allows buyers to personalise, accessorise and configure a motorcycle at booking stage itself. MiY is now available on the Meteor 350 as well as on the 650 Twin motorcycles. We are very proud to be the first Indian motorcycle manufacturer to offer such a wide choice of personalization options to consumers. Innovative initiatives such as Service on Wheels and Home test rides have received encouraging response from customers. We have also expanded our network during the quarter, by adding 25 new stores and 133 studio stores across India, and 6 new exclusive stores in International markets.”
Further, on the VECV segment, Eicher said, in Q2FY21m due to decline in volumes, VECV’s revenue from operations dropped by 13% to Rs1,703cr against Rs1,955cr in Q2 of last year. In Spite of drop in revenues, the EBITDA margin improved to 6.9% for the quarter against 5.4% during the corresponding quarter for the last year due to stringent cost reduction measures being undertaken. The segment incurred a marginal loss of Rs7cr during this quarter against a profit of Rs15cr in Q2 last year.
Vinod Aggarwal, MD and CEO VECV said, "The Commercial vehicles industry (3.5T GVW and above) continued to decline in Q2 despite quarter on quarter improvement."
Agarwal added, "Within the overall industry, the worst impacted is the Bus segment with decline of 85% in Q2 and 97% in Q1 due to negligible demand from school and staffing segments and adverse impact on inter-city movement through public buses due to COVID. At the same time, the initial signs of revival of the industry are quite visible with a positive outlook for the economy going forward. We are witnessing good demand from niche segments such as construction, mining, agriculture and e-commerce amongst others."
With healthy order book and booking numbers ahead of pre-Covid-19 levels boost investors sentiment.
At around 1.43 pm, Eicher was trading at Rs2520.60 per piece surging by Rs169.05 or 7.18% on Sensex.
Eicher has also hit a 52-week high of Rs2,565 per piece on the index.