Eicher Motors Ltd on May 13 declared a consolidated profit after tax (PAT) of Rs 610 crore for the quarter ended March 2022, up 16 percent from Rs 526 crore in the year-ago period.
On a sequential basis, the growth in profit was 34 percent from Rs 456 crore in the previous quarter.
The maker of iconic Royal Enfield reported a year-on-year (YoY) growth of 8.6 percent in its consolidated revenue at Rs 3,193 crore from Rs 2,940 crore in the corresponding period of the previous year.
Sequentially, revenues rose 11 percent from Rs 2,881 crore in the December quarter.
For the full year, from April 2021–March 2022, PAT jumped 25 percent to Rs 1,677 crore from Rs 1,347 crore in FY21.
Consolidated revenues rose by 18 percent to Rs 10,298 crore from Rs 8,720 in the previous financial year.
The growth was led by YoY increase in average selling prices (ASPs) due to a richer model mix and price hikes taken over the past few quarters. This, however, was partly offset by YoY decline in volumes for Royal Enfield.
Costs
The lower volumes led to decrease in raw material costs as a percentage of revenue from operations to 57 percent compared to 61 percent during the corresponding period last year. The raw material costs however are higher compared to the preceding quarter when they had stood at mere 49 percent of revenue from operations due to significant decline in volumes.
Employee costs dipped marginally by 100 bps on year to 7 percent of revenue from operations. On a sequential basis, the employee costs were stable.
Other expenses on the other hand picked up 100 bps from last year to 13 percent and were stable on a sequential basis.
Dividend
The company approved a dividend of Rs 21 per equity share of face value of Re 1 each for the financial year ended March 31, 2022.
Eicher Motors, gained Rs 48 or 2 percent to close at Rs 2,432.65 on May 13, at The National Stock Exchange. The stock has been trading flat over the past one year and is down marginally by 2.4 percent over the past one week.