Eicher Motors, the parent company of the motorcycle brand Royal Enfield, has reported a significant increase in its financials for the fourth quarter of fiscal year 2023-24. The company witnessed an 18.2% year-on-year increase in Profit After Tax (PAT), reaching ₹1070.45 crore. This substantial growth was driven by a multitude of factors, including better sales volumes, higher average selling prices (ASPs) and the successful introduction of new models.
Eicher Motors’ Performance Metrics
Eicher Motors reported a consolidated revenue from operations of ₹4256.04 crore for the quarter – a notable 11.87% increase over the previous year. This surge in revenue was driven by the stellar performance of Royal Enfield, which recorded sales of 227925 motorcycles during the quarter – a strong 6.17% growth compared to the corresponding period in FY 2022-23. Notably, the company’s Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) saw a substantial increase of 20.88% year-on-year, reaching ₹1129 crore.
Contributing Factors
Eicher Motors’ financial performance can be attributed to multiple key factors. The successful launch of new products, including the Bullet 350, the revamped Himalayan and the Shotgun 650, played an important role in driving sales and revenue growth. Additionally, the company’s focus on expanding its product portfolio and improving its global footprint boosted its market presence and customer engagement.
Management Commentary
Siddhartha Vikram Lal, Managing Director & CEO of Eicher Motors, expressed satisfaction with the company’s performance across both Royal Enfield and VE Commercial Vehicles (VECV).
B. Govindarajan, CEO of Royal Enfield and wholetime director of EML, stated, “2023–24 has been a hugely significant and high-adrenaline year for us, as we recorded our best ever performance, successfully surpassing our pre-COVID levels of growth.”
Vinod Aggarwal, MD and CEO of VECV, said, “FY24 was a strong year for all our businesses. Our modern, connected and efficient products, backed by our Uptime Promise, have been well received by customers looking to modernize logistics and we have gained market share as a result.”
Dividend Declaration and Market Response
The Board of Directors of Eicher Motors announced a final dividend of Rs 51 per share for FY24, aggregating to ₹1396.41 crore.
The market responded positively to Eicher Motors’ performance, with its stock price ending at ₹4670 per share on the National Stock Exchange (NSE) – a noteworthy increase of over 2% from the previous day’s close.
