Eicher Motors Q3 PAT down 14% YoY

Eicher Motors recorded 14% fall in consolidated net profit to Rs 456 crore despite a 1.9% rise in total revenues to Rs 2,881 crore in Q3 FY22 over Q3 FY21.

EBITDA was at Rs 582 crore as compared to Rs 672 crore in the same quarter of the previous financial year, down 13% YoY.

Royal Enfield sold 1,67,664 motorcycles during the quarter, a decline of 15.6% from 198,557 motorcycles sold over the same period in FY 2020-21.

Siddhartha Lal, managing director of Eicher Motors, said, 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.

At VECV, we made good progress across all segments backed by our focused and granular approach. We achieved encouraging growth despite supply chain challenges.

B. Govindarajan, executive director, Royal Enfield said, Our growth momentum at Royal Enfield continues to remain stable, highlighted by persistent good performance in the international markets. Performance across Europe and Americas has consistently registered growing trends, and we continue to deepen presence and engagement in these markets.

During the quarter, we furthered our commitment to the Asia-Pacific region with the commencement of operations at our CKD facility in Thailand. This facility will enable us to efficiently cater to the growing demand in the region, and also become the hub for the rest of Southeast Asia.

Moving forward, we are optimistic that supply chain constraints will gradually ease out over the next two quarters and production to stabilise over time

For the quarter ended 31 December 2021, VECV's revenue from operations was Rs 3,625.7 crore, up by 35.3% from Rs 2,680 crore in the same period last year. Profit After Tax (PAT) for the quarter was Rs 66 crore as compared to Rs 57.7 crore during the same period last year, up 14% YoY.

VECV sold 16,044 vehicles in Q3 with a growth of 25.3% as compared to 12,805 vehicles sold in the corresponding quarter last year.

Vinod Aggarwal, MD & CEO VECV said 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. With our strong product range as well as further improvement in the distribution network, we will continue to strive to strengthen our position in the industry.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles (VECV), which operates in India's commercial vehicle space.

The scrip rose 0.21% to currently trade at Rs 2573.95 on the BSE.

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