Eicher Motors Q3 results: Net profit up 18% at Rs 1,171 cr on strong demand

Eicher Motors Q3 FY25 results: Royal Enfield, Eicher's motorcycle division, recorded its highest-ever quarterly sales volume, selling 269,039 motorcycles, compared to 229,214 units sold in Q3 FY24

India's Eicher Motors, which makes the Royal Enfield brand of motorcycles, reported its strongest-ever quarterly performance for the third quarter (Q3) of the financial year 2024-25 (FY25), with a consolidated net profit of Rs 1,171 crore, up 17.5 per cent year-on-year (Y-o-Y) from Rs 996 crore in Q3 FY24. 

CEO B Govindarajan attributed the record-breaking quarter to strong demand, successful new launches, and an optimised supply chain. He highlighted the Hunter 350's global success, surpassing 500,000 units in sales.

 

“Royal Enfield has continued to strengthen its position in the mid-size motorcycle segment recording its best-ever quarter, driven by a robust demand for our motorcycles across the globe," Govindarajan said.

 

Sequentially profit rose marginally by 6.4 per cent from Rs 1,100 crore.

 

Consolidated revenue from operations rose 19 per cent year-on-year (Y-o-Y) to Rs 4,973.12 crore from Rs 4,178.84 crore. Sequentially, revenue rose by 16.7 per cent from Rs 4,263 crore.  

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 10 per cent Y-o-Y to Rs 1,201 crore from Rs 1,090 crore in Q3 FY24.

 

Royal Enfield posts record sales

Royal Enfield, Eicher's motorcycle division, recorded its highest-ever quarterly sales volume, selling 269,039 motorcycles - a 17 per cent increase from 229,214 units sold in Q3 FY24, the company said in an exchange filing.

 

In a bid to expand internationally, Royal Enfield launched its first fully owned CKD assembly unit outside India in Bangkok, Thailand, with an annual capacity of 30,000 units. This marks the brand’s sixth global CKD facility, following units in Argentina, Colombia, Brazil, Bangladesh, and Nepal, the company said. 

 

VE Commercial Vehicles (VECV), Eicher’s joint venture with Volvo, reported Rs 5,801 crore in revenue, up 6 per cent Y-o-Y from Rs 5,483 crore in Q3 FY24.

 

Ebitda rose 16 per cent to Rs 509 crore from Rs 437 crore.

 

Net profit jumped 44 per cent to Rs 301 crore, up from Rs 209 crore a year ago.

 

VECV sold 21,012 vehicles, surpassing its previous record of 20,706 units.

 

MD and CEO Vinod Aggarwal stated that VECV gained market share across all segments, despite sluggish industry conditions. The company also achieved its highest-ever Q3 sales in buses and expanded its parts business by 25 per cent Y-o-Y.

 

Expansion and electric mobility push

Eicher introduced its first EV brand, Flying Flea, which recently partnered with Qualcomm Technologies for next-gen connectivity in electric motorcycles.

 

Royal Enfield expanded REOWN, its pre-owned motorcycle platform, to 236 cities across India.

 

Motoverse 2024, an annual gathering of riding enthusiasts, saw 10,000+ attendees, where Royal Enfield unveiled the Goan Classic 350, a bobber-inspired model priced at Rs 2.35 lakh.

 

The company also launched "Journeying Across the Himalayas," a 10-day cultural festival celebrating Himalayan communities.

   

Shares of Eicher Motors closed at Rs 5,310.70 on the BSE, down more than 1 per cent per cent before the Q3FY25 financial results were released.