Eicher Motors reported first quarter net profit to Rs160.62 crore on robust sales growth of its Royal Enfield Motorcycle business and exports
Eicher Motors Ltd, the producer of iconic ‘Royal Enfield’ or Bullet brand motorcycles in India, recorded a higher first quarter net profit on robust sales growth in its motorcycle business and exports.
For the quarter to end-March, the trucks, buses and two-wheelers manufacturer, said its stand alone net profit rose 65% to Rs160.62 crore from Rs97.20 crore while total revenues, including sales, increased 79% to Rs720.59 crore from Rs401.99 crore, same period last year.
Eicher Motors’ motorcycle business unit recorded growth of 85% during the first quarter on record sales of 64,268 units of Royal Enfield from 34,736 units, same period year ago.
“While the industry continues to decline, Royal Enfield continues to perform exceptionally well posting record sales and production numbers this quarter and working its way to become a leader in the global mid-sized motorcycling industry. We had a very strong volume growth this quarter and we do continue maintain an extremely healthy order book,” said, Siddhartha Lal, managing director & chief executive officer, Eicher Motors.
However, Eicher Motors commercial vehicle business sales remain negative during the quarter due to slowdown in auto industry. Its heavy duty truck sales fell by 32.7% to 1,420 units, light and medium duty trucks by 29.1% to 5,413 units and buses by 15% to 1,859 units respectively. Its Volvo truck sales grew 18.4% to 167 units from 141 units a year ago period. Its exports grew 148.2% to 1,122 units from 452 a year ago period.
“The commercial vehicle industry continues to battle the enormous downturn that has been affecting this sector for more than 30 months now. The first quarter of 2014 has been particularly tough that saw the domestic industry (5 tonne and above) decline by 18.3%. Despite tough conditions, VECV has continued to perform well,” said Mr Lal.
On 14th March, Eicher Motors has declared final dividend of Rs30 per share.
Eicher Motors shares hits an all time high of Rs6,756 on 9th May on BSE.
At 2.19pm Monday, Either Motors was trading 1.1% up at Rs6,544 on the BSE, while the S&P BSE Sensex was up 2.2% at 23,494.
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