Eicher Motors net profit drops 14% at Rs 456 crore in Q3 as sales drop

Eicher Motors on Monday said its consolidated net profit declined by 14.44 per cent to Rs 456.13 crore for the third quarter ended December 31, 2021, on account of lower sales due to semiconductor shortage.

The company had posted a consolidated net profit of Rs 532.59 crore in the December quarter of 2020-21.

Total revenue from operations however increased marginally to Rs 2,880.65 crore in the third quarter from Rs 2,828.26 in the same period of the previous fiscal, Eicher Motors said in a regulatory filing.

Royal Enfield, a part of Eicher Motors, sold 1,67,664 motorcycles during the third quarter, a decline of 15.6 per cent from 1,98,557 motorcycles sold over the same period in 2020-21.

The ongoing global shortage of semiconductor chips and the onset of the third wave of COVID impacted the third quarter results, Eicher Motors stated.

Continuing global shortage of semiconductor chips and the onset of the third wave of the COVID-19 pandemic, posed a challenge to the industry at large during the third quarter.

"We are working towards creating an alternative vendor ecosystem to mitigate the impact of the shortage on the supply front. Our performance continues to remain resilient despite challenges, Eicher Motors Managing Director Siddhartha Lal noted.

VECV, the company's joint venture with Volvo, reported a profit after tax (PAT) of Rs 66 crore in the third quarter as compared to Rs 57.7 crore during the same period last year.

The company sold 16,044 vehicles in Q3 as compared with 12,805 vehicles in the corresponding period of 2020-21.

The commercial vehicle industry has continued to improve quarter on quarter and is expected to continue the growth path with a lot of pent up replacement demand and strong focus continuing on infrastructure investments, VECV MD & CEO Vinod Aggarwal noted.

Shares of the company ended 1.08 per cent down at Rs 2,568.55 apiece on BSE.