Eicher Motors, makers of Royal Enfield bullet, nearly doubled its net profit to Rs 245 crore for the quarter ended December 31, 2015 on the back of record sales. Profit for the quarter touched a zoomed 97.5 per cent to Rs 245 crore while revenue grew 55 per cent to Rs 1,284 crore. Sales volume grew 53 per cent to 125,690 units. The company follows a January-December accounting year but will shift to April to March year from coming April.
Eicher's stock zoomed 7 per cent to Rs 18,218 at the Bombay Stock Exchange. The company's earnings before interest and tax or EBIT margins touched an all time high of 26.1 per cent in the quarter, significantly up from 21.8 per cent in same period of 2014.
Siddhartha Lal, managing director & chief executive officer said, "Royal Enfield continued with its strong performance in Q4 2015 despite being effected by one of the worst floods in Chennai in the last two months of 2015. We lost production of 11,200 motorcycles". Net profit for the year ended December 31, 2015 rose 56 per cent to Rs 870 crore. Revenue increased 53 per cent to Rs 4,643 crore, helped by 50 per cent increase in volumes. There is an average waiting period of 3-4 months of Eicher's motorcycles.
Eicher's consolidated profit, including the commercial vehicle business, increased 76 per cent to Rs 270.8 crore in the quarter. Consolidated sales revenue rose 46 per cent to Rs 3,248 crore.