Eicher Motors Q1 Results: Net profit up 50% at Rs 918 crore on robust sales

Eicher Motors Q1 Results: Eicher Motors on Thursday said its consolidated net profit increased by 50 per cent to Rs 918 crore for the first quarter ended June 30, 2023, on the back of strong sales across domestic and international markets.

The company, which reported a net profit of Rs 611 crore in the April-June period of last fiscal, said it is in the process of setting up a production capacity of 1.5 lakh electric vehicle units.

Eicher Motors looks to launch its first EV product after two years.

Total revenue from operations rose to Rs 3,986 crore in the first quarter as against Rs 3,397 crore in the year-ago period, Eicher Motors said in a regulatory filing.

This is the best ever Q1 performance for the company, and is also the fourth consecutive quarter of highest-ever revenue from operations and profit, it added.

Royal Enfield sold 2,25,368 motorcycles in the first quarter, an increase of 21 per cent from 1,86,032 units in the same period of the 2022-23 fiscal.

"Q1 has been significant for Eicher Motors as both Royal Enfield and VECV have registered their best ever first quarter performance, and have recorded tremendous growth," Eicher Motors Managing Director & CEO Siddhartha Lal said.

At Royal Enfield, the Hunter 350 and Super Meteor 650 have significantly helped the company in growing the market and continue to bring in a new set of consumers from across the globe, he added.

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"As we continue to strengthen our product portfolio we have some really exciting and amazing motorcycles being launched in the forthcoming quarters," Lal said.

He noted that even with increasing players in the mid-sized market, Royal Enfield would look at retaining leadership in the segment going ahead.

The company has lined up a capex of around Rs 1,000 crore for this fiscal, with some of it going into developing products and sales infra for EVs.

Royal Enfield CEO B Govindarajan said the company has already hired around 100 people for the electric vehicle space but it will take at least two years for it to launch the first product in the market.

"We are in full speed of execution. To start off we we plan to have a production capacity of 1.5 lakh units. It is going to be in a modular form," he noted.

VECV, a joint venture between the Volvo Group and Eicher Motors, also recorded its best-ever first quarter with sales of 19,571 units as against sales of 17,469 vehicles in Q1 of the corresponding quarter last year.

Shares of Eicher Motors ended 1.41 per cent up at Rs 3,380.10 apiece on the BSE.

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