Royal Enfield parent Eicher Motors logs 8% growth in Q2 profit, in line with analysts' expectations

Royal Enfield parent Eicher Motors on Wednesday reported a consolidated net profit of Rs 1,100 crore for the quarter ended September 30, marking an increase of 8.3 per cent over the corresponding period a year ago. Eicher Motors' revenue grew 3.6 per cent to a record Rs 4,263 crore for the fiscal second quarter, according to a regulatory filing. Zee Business analysts had estimated Eicher Motors' net profit at Rs 1,070 crore and revenue at Rs 4,474 crore for the July-September period.

Eicher Motors Q2 FY25 Earnings: Operational performance 

The automobile giant clinched Rs 1,088 crore in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), as against Rs 1,087 crore a year ago.

Zee Business analysts had expected Eicher Motors' quarterly EBITDA to be Rs 1,210 crore.

Eicher Motors Q2 Results: Management commentary 

Eicher Motors continued to sustain momentum at Royal Enfield as well as VE Commercial Vehicles (VECV), said its Managing Director Siddhartha Lal. VECV is Eicher Motors' joint venture with Sweden’s Volvo Group.

"At EICMA, earlier this month, we launched two motorcycles on our 650-Twin platform; the Bear 650, and the Classic 650. In addition to this, Royal Enfield marked its foray into electric mobility with a new EV brand- the Flying Flea. With an intent to disrupt and grow the electric motorcycle segment, we are approaching it with the same singularity, focus and unconventionality with which we have grown and energised the global mid-size segment over the last several years," said Lal. 

On the commercial vehicle front, VECV delivered its best second-quarterly performance ever, with strengthened market shares in truck segments, he said.

"This is commendable against the backdrop of lower industry volumes as compared to Q2 of last year," added Lal. 

Eicher Motors Q2 Results: Royal Enfield

Royal Enfield recorded sales of 2,25,317 motorcycles during the quarter, a decline of 1.8 per cent on a year-on-year basis.

The motorcycle manufacturer forayed into the electric vehicle (EV) space by announcing the launch of its completely new electric vehicle brand, Flying Flea, this month.

VECV Performance 

VECV’s revenue increased 8.0 per cent to Rs 5,538 crore while profit after tax stood at Rs 209 crore, up 11.8 per cent over the year-ago period, according to Eicher Motors.

VECV recorded sales of 20,774 vehicles in the second quarter over 19,551 vehicles last year, it said. 

Eicher Motors Shares

Earlier on Wednesday, Eicher Motors shares ended lower by Rs 149.5, or 3.2 per cent, at Rs 4,589.1 apiece on BSE.

As of November 13, Eicher Motors has delivered a 26 per cent return, outperforming a 21 per cent gain in the headline Nifty50 index.

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