Eicher Motors Limited announces financial results for the Quarter ended June 30th, 2019
For the quarter ended June 30, 2019, Eicher Motors Limited recorded total revenue from operations at Rs. 2,382 crores, EBITDA at Rs. 614 crores and Net Profit After Tax at Rs. 452 crores
New Delhi, July 31, 2019: Eicher Motors Limited (EML) today announced its unaudited consolidated financial results for the quarter ended 30th June, 2019.
For the quarter ended 30 June 2019, Eicher Motors's total revenue from operations was at Rs. 2,382 crores, down by 7% as compared to Rs. 2,548 crores in Q1 of FY 2018-19; EBITDA was Rs. 614 crores, lower down by 24% compared to Rs 810 crores in Q1 of FY 2018-19; Profit After Tax was recorded at Rs. 452 crores as compared to Rs. 576 crores in the same period last year. Royal Enfield sold 181,966 motorcycles in the quarter, registering a decline of 19% from 225,286 motorcycles sold over the same period in the last financial year.
Commenting on Eicher Motors' performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd, said, "The two-wheeler and the CV industry continue to face headwinds on account of weak consumer demand. Sales of Royal Enfield motorcycles declined 19% on year on year basis during the quarter. However, our 650 Twins continue to do extremely well in India as well as across international markets and we are ramping up production to cater to the enthusiastic response that the 650 Twins have received since their launch. Our preparedness for the BS-VI transition continues to be on track and we are on course to meet regulatory timelines. In the CV industry, sales have been low due to the weak demand on account of economic slowdown and liquidity and it is also witnessing heavy discounting. However, as a part of our long term commitment to drive modernisation in the CV industry, VECV unveiled the Eicher Pro 2000 series, India's first BS VI compliant range of CV's. With several industry first modern features, the new Pro 2000 range makes VECV the first CV company to be BS VI compliant, driving modernisation in the CV segment in India and other developing markets."
Speaking further on Royal Enfield's performance, Vinod Dasari, CEO Royal Enfield said, "The demand in two-wheeler industry remains weak due to slowing economic growth, tightening liquidity and regulation driven price increases, that have led to poor consumer sentiment. At Royal Enfield, we remain focused on our key priorities, which is to deepen our markets in India and to strengthen our position as a global consumer brand. To reinforce our distribution network in India, we are working on building a network of compact retail format stores. Royal Enfield Studio Stores will be an important step towards building better accessibility across smaller towns and cities in India and allowing discerning consumers to experience the complete Royal Enfield pure motorcycling ecosystem. We will also be introducing new motorcycle variants in the coming months to widen our offering and provide greater accessibility to our discerning customers"
During the first quarter, Royal Enfield continued to strengthen its presence in international markets. Royal Enfield entered South Korea by launching its first exclusive store in Seoul, and also added two new stores in Brazil, and one each in Argentina, Indonesia and Vietnam.
The 650 Twin motorcycles continue to gather great response from customers across the globe. During the quarter, the Interceptor and the Continental GT 650 were launched in Indonesia, Vietnam and Malaysia and have been received extremely well. In the UK, the Interceptor 650 has emerged as the highest selling motorcycle in the 'Naked Street' category.
Advancing its journey with motorcycle customization, Royal Enfield unveiled exciting new custom models at the eighth edition of Wheels and Waves 2019 - one of Europe's iconic motorcycle festivals held in Biarritz, France. The all new BAAK Motocyclette build, based on the Interceptor 650, that takes the motorcycle in a never-before-seen-direction, while the 'Nought Tea GT, developed in collaboration with Harris Performance, prepares the Continental GT for the race track. These, along with 5 other exciting custom motorcycles were presented at Wheels and Waves 2019, reinstating that Royal Enfield motorcycles are the perfect canvas for customisation.
As part of its rides program, Royal Enfield also successfully completed a first-of-its-kind motorcycle expedition to Karakoram Pass in collaboration with the Indian Army. Commemorating 20 years of the Kargil Vijay Diwas, the ride was undertaken by Army personnel including women officers to renew and rekindle the spirit of fortitude, courage and adventure synonymous with the Indian Army.
In the Commercial Vehicles segment, VE Commercial Vehicles (VECV) - Eicher's joint-venture with AB Volvo - continued to be affected by the demand slowdown. For the quarter ended June 2019, VECV's revenue from operations was Rs. 2,255 crores, down 14% from Rs. 2,609 crores in the same period last year; EBITDA declined by 48% to Rs. 125 crores from Rs. 240 crores in the same period last year; Profit After Tax declined by 68% to Rs. 38 crores from Rs. 118 crores recorded during the corresponding period FY 2018-19. VECV sold 13,331 trucks and buses in the quarter, registering a decline of 18% over the same period last year.
Speaking on VECV's performance Vinod Aggarwal, CEO VECV said "The auto industry is currently going through a very challenging phase. Both domestic as well as export market, have been severely impacted with a drop of more than 20% in Quarter 1 of this year. The decline in market similarly impacted VECV, as our sales also dropped by around 18% in Q1. Overall industry's sentiments are down with an increase in fuel prices, lower availability of loads due to slowdown in economy and consequently low replacement demand. We expect some pick up to happen from September with the onset of the festive season and also anticipate to see some positive impact of pre-buying with BS VI norms becoming applicable from 1st April 2020. Last quarter, VECV unveiled India's first BS VI-compliant CV range with the launch of Eicher Pro 2000 series. VECV has a vast experience of over 6 years while supplying base engines for Euro-VI requirements of the Volvo Group, that gives us an edge in tackling the challenges posed by the new engine technology."
View the Eicher Motors Ltd Q1 2019-20 Results Microsite (To go live at 07:00 PM July 31, 2019)
About Eicher Motors Limited:
Eicher Motors Limited (EML) (Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world's oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focussed on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 50 countries around the world. With modern development facilities in Leicestershire, UK and Chennai, India, Royal Enfield makes its motorcycles in Tamil Nadu for the world.
In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - VE Commercial Vehicles Limited (VECV) - which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has a complete range of trucks and buses from 5-49 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.
For the twelve months ended March 2019, Eicher Motors recorded its highest ever total income of INR 9,797 crores which is approximately USD 1.4 billion. EML is listed on the Bombay and National Stock Exchanges. As of April 1st 2016, Eicher Motors Limited became a part of the Nifty 50 Index.
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Disclaimer:
All statements included or incorporated by reference in this media release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Although EML believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and EML undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them
Corporate Communications: Swati Sundareswaran : swati@royalenfield.com
Shreyas Bhatt : shreyas@eichermotors.com
