Siddhartha Lal MD and CEO, Eicher
Rising on a strong demand for Royal Enfield motorcycles, Eicher Motors, has reported a 69 per cent jump in its net profit for the quarter ended June 30. Net profit grew to Rs 337 crore against Rs 199 crore in corresponding quarter last year. Revenue from sales grew 42 per cent to Rs 1,551 crore as the company sold 40 per cent more motorcycles in the quarter.
Its commercial vehicles business reported revenue of Rs 2,139 crore, up 20 per cent from same period of last year and reported a 40 per cent growth in profit to Rs 108 crore. The company reported a strong EBIDTA margin of 30.2 per cent against 26.1 per cent in last year.
The Royal Enfield brand continues to have a strong pull in the market seen in a waiting period of many months. The commercial vehicle arm VECV sold 16,071 units in the quarter, recording a growth of 32.5 per cent year on year. The results were announced after close of trading hours at the exchanges.
The stock still shot up to closed at Rs 21,075 at the BSE, up 3.64 per cent from the previous day. “Royal Enfield has maintained its strong volume growth in the first quarter of FY 2016-17 and we continue to take more orders than our monthly supply,” said Siddhartha Lal, Managing Director and CEO at Eicher Motors.