Eicher Motors Reports Jump in Q4 Profit of 48% YoY to Rs 905 Crore Compared to Last Year

On Friday, shares of Eicher Motors surged by about 7% and its stock was trading at Rs 3,605.90 on the NSE up 5.89%. Recently the firm reported its highest-ever quarterly revenue from operations of Rs 3,804 crore, representing a 19.1% increase over the previous year's similar quarter revenue of Rs 3,193 crore. Eicher Motors Limited (EML) has revealed its fourth-quarter financial results, which show a consolidated net profit of Rs 905 crore, a 48% rise over the same period the previous year when the profit was Rs 610 crore.

Eicher Motors' Managing Director, Siddhartha Lal, expressed pleasure with the company's achievements, noting that it was an exceptional year for Eicher Motors Ltd. He cited the company's considerable success and best-ever business and financial performance in both Royal Enfield and VE Commercial Vehicles, as well as the stabilisation of the supply chain, markets, and organisation.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter ending March 31, 2023, reached Rs 934 crore, a significant increase of 23.3% over Rs 757 crore in the same quarter the previous fiscal year. Eicher Motors' board of directors has approved a dividend of Rs 37 per share for the fiscal year ending March 2023. The dividend will be paid out within 30 days following shareholder approval.

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VE Commercial Vehicles (VECV) also performed admirably, reaching its highest-ever quarterly income from operations of Rs 6,200 crore, a significant 43.9% rise over Rs 4,307 crore in the previous fiscal year's similar period. VECV's EBITDA increased by 114.7% to Rs 619 crore, up from Rs 288 crore. In addition, VECV achieved its highest-ever quarterly sales of 26,376 units, a 31.3% increase over the same period last year. Lal applauded VECV's excellent market-share growth across segments, as well as the Auto Expo 2023 demonstration of alternative fuel and future-ready alternatives.

Royal Enfield reported fourth-quarter sales of 214,685 motorcycles, a 17.9% increase over the previous fiscal year's fourth-quarter sales of 182,125 motorcycles. Lal emphasised the successful debut of the Hunter 350 and Super Meteor 650, which garnered a tremendous response from consumers all throughout the world. He also emphasised the company's accomplishments in the EV (electric vehicle) area, as well as their collaboration with Stark Future.

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Overall, Eicher Motors has had a remarkable year, with strong financial performance in both its Royal Enfield and VE Commercial Vehicles divisions. The company's focus on innovation, expanding its product portfolio, and venturing into the EV space has yielded positive results, setting a solid foundation for future growth.

Additionally, the Eicher Motors board has approved a cash outlay of Rs 1,000 crore for the fiscal year 2023-24. This investment will include funding for an EV manufacturing facility, product development, and new product development under the Internal Combustion Engine portfolio.

Source-TOI

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