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For Eicher Motors Limited
General Counsel & Company Secretary
Eicher Motors Limited
#96, Sector - 32
3rd Floor - Select Citywalk
Gurugram - 122001
A - 3, District Centre, Saket
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Tel +91 124 4415600
For Immediate Release
Eicher Motors Limited announces financial results for quarter ended
June 30, 2021
For the quarter ended June 30, 2021, Eicher Motors Limited recorded total revenue from operations at Rs. 1,974 crores, EBITDA at Rs. 363 crores and Profit after tax at Rs. 237 crores
Royal Enfield ended the quarter with its best ever performance in international markets with total exports at 17,493 units, more than 400% increase over 3,444 in the same period last year; and an 83% increase over 9,572 in Q1 of FY20
Royal Enfield announces local motorcycle assembly unit in Colombia, the second such facility for the company outside India after Argentina in September, 2020
New Delhi, August 12, 2021:Eicher Motors Limited (EML) today announced its unaudited consolidated financial results for the quarter ended June 30, 2021.
For the quarter ended June 30, 2021, Eicher Motors' total revenue from operations was recorded at Rs. 1,974 crores up 141% as compared to Rs. 818 crores in the corresponding quarter of FY 2020-21; EBITDA was Rs. 363 crores as compared to Rs. 4 crores in the same quarter of the previous financial year. Profit After Tax was Rs. 237 crores as compared to a loss Rs. 55 crores during the same period last year. Royal Enfield sold 122,170 motorcycles in the quarter, an increase of 109% from 58,383 motorcycles sold over the same period in FY 2020-21.
Commenting on Eicher Motors' performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd., said, "With the second wave of the pandemic sweeping across the country and making its impact felt through the economic cycle, the previous quarter presented a challenging environment for the automotive sector overall. However, we continue to believe in our strong business fundamentals and are positive about thelong-termprospects and performance of both Royal Enfield and VECV. Despite the unprecedented situation, we stayed resilient and delivered the strongest ever quarter for Royal Enfield in international markets. In India, our bookings saw an uptick in the month of June as local lockdowns and restrictions were gradually lifted across the country. The global shortage of semiconductors continues to be a concern, and is likely to hamper production for the ongoing quarter, and possibly through the rest of the year as well. While the economy continues to recover, we remain optimistic and committed to our strategic focus areas moving forward."
Speaking on Royal Enfield's performance, Vinod K. Dasari, CEO, Royal Enfield said, "Despite challenging market conditions, we continued to stay committed to our core objective of being a truly global motorcycling brand. Our razor-sharp business focus, long-term thinking and commitment to the market, complemented by our digital initiatives helped us navigate through the challenges and register an overall buoyant performance during the quarter. We registered our best ever quarterly performance in international markets with a year-on-year increase of more than 400%, on the back of strong performance in the Americas. We are investing in CKD facility units to further strengthen our presence in key potential markets. After Argentina, we have recently set up a CKD assembly unit in Colombia. We also marked our entry into the Netherlands and Singapore with our flagship, exclusive stores. Also our enhanced focus on building a pure motorcycling ecosystem, has resulted in consistent growth in non-motorcycling revenues across apparel, accessories and spares. Constraints on account of local and global supply chain disruptions continue to impact us, but we are working closely with our suppliers to quickly resolve them. With a growing preference for personal mobility among consumers,
improving economy and demand sentiment, and our strong product pipeline, we are optimistic about stronger recovery once supply chain stabilizes during the second half of the year."
Royal Enfield today announced the commencement of local assembly of motorcycles in Colombia, the third biggest motorcycle market in Latin America, in partnership with its local distributor. This is the second assembly unit for Royal Enfield in international markets after Argentina. The local assembly unit in Colombia will be based in Envigado, Antioquia. To begin with, the plant will locally assemble the Royal Enfield Himalayan, starting this month.
During the quarter, Royal Enfield expanded its presence in international markets and commenced operations in Singapore and the Netherlands with the launch of standalone, flagship stores. The stores showcase the entire range of Royal Enfield motorcycles, including the Interceptor 650, Continental GT 650, Himalayan, and the Classic 350.
Royal Enfield continues to nurture the spirit of pure motorcycling through a host of unique motorcycling experiences and programs. During the quarter, Royal Enfield furthered its commitment to foster flat-track racing with the introduction of its Slide School programme in the UK. The UK Slide School joins existing flat-track programmes in India and the USA. Royal Enfield also introduced the second edition of the Build Train Race (BTR)- its women's only racing program in the USA. During the quarter, Royal Enfield also secured top 2 places in the inaugural races of Dirt Track Riders Association season in the UK, followed by its first ever half mile win at American Flat Track Lima, Ohio Half Mile race.
For the quarter ended 30 June 2021, VECV's revenue from operations was Rs. 1,639 crores, up by 156% from Rs. 641 crores in the same period last year; EBITDA for the quarter was Rs. 18 crores which is significantly higher as compared to a EBITDA loss of Rs. 72 crores in the corresponding quarter of the previous year. There was a net loss of Rs. 72 crores for the quarter, as compared to a net loss of Rs. 120 crores for the same period last year. VECV sold 5,806 trucks and buses in the quarter, a notable increase of 173% from 2,129 trucks and buses sold over the same period in the last financial year.
Speaking on VECV's performance Vinod Aggarwal, MD and CEO VECV said "Last quarter has been very challenging for the CV industry as well as VECV. With lockdowns and cautious approach by financiers, retail of vehicles was severely impacted. We focused on keeping the channel partners healthy to tide over the difficulties faced by them. In line with the VECV spirit of partnership, we provided soft loans to our dealers along with medical and financial support to their employees. We also extended the warranty period on Eicher Trucks and Buses to account for lockdown disruptions for our customers. With the second wave receding and vaccination in full swing, we expect the CV industry to bounce back as customers start to replace old trucks and buses with modern fuel-efficient and highly productive vehicles."
About Eicher Motors Limited:
Eicher Motors Limited (EML) (Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of Royal Enfield, global leader in the middleweight motorcycles segment (250cc - 750cc). 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 60+ 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, EML 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 includes the complete range of Eicher branded trucks and buses, Volvo trucks in India, engine manufacturing and exports for Volvo Group, non-automotive engines, and Eicher component business. Its integrated manufacturing plant in Pithampur, Madhya Pradesh is also the global hub for medium-duty
5 and 8-liter engines for Volvo Group. In 2020, VECV signed definitive agreements to integrate Volvo Buses India into VECV including manufacture, assembly, distribution, and sale of Volvo Buses in India.
For FY '21, Eicher Motors Ltd recorded a total income of INR 8,720 crores which is approximately USD 1.1 billion. In addition, VECV reported a total revenue of INR 3,602 crores in FY '21; this revenue is not consolidated in EML's income. 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. Please visit our website: www.eichermotors.com.
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.
Eicher Motors Ltd. published this content on 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 06:00:06 UTC.