In This Article:
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Revenue: INR 4,973 crores, up 19% YoY.
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EBITDA: INR 1,201 crores, compared to INR 1,090 crores last year.
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EBITDA Margin: 24.2%, down from 26.1% last year.
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Profit After Tax: INR 1,171 crores, up 17.6% from INR 996 crores last year.
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Royal Enfield Motorcycle Sales: 269,039 units, up 17% YoY.
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Domestic Motorcycle Sales: 241,971 units, up 13% YoY.
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International Motorcycle Sales: 27,068 units, up 71% YoY.
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VECV Revenue: INR 5,801 crores, up 5.8% YoY.
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VECV EBITDA: INR 509 crores, up 16.6% YoY.
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VECV EBITDA Margin: 8.8%, up from 8% last year.
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VECV Profit After Tax: INR 301 crores, up 44% YoY.
Release Date: February 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eicher Motors Ltd (BOM:505200) recorded its highest-ever quarterly revenue, EBITDA, and profit after tax.
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Royal Enfield achieved its best-ever quarter with strong domestic growth and successful launches of new motorcycle models.
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The company made significant strides in electric mobility with the debut of its EV brand, Flying Flea.
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VECV gained market share across business segments and showcased a range of alternate energy products.
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International markets saw a 71% increase in shipments, with strong retail growth and market share gains in key regions.
Negative Points
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EBITDA margin decreased to 24.2% from 26.1% in the previous year, indicating pressure on profitability.
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There was a significant increase in other expenses due to multiple product launches and marketing activities.
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The commercial vehicle industry saw a decline in key segments, impacting overall growth.
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The company faces geopolitical challenges affecting export markets, leading to modest growth.
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The transition to OBD IIb standards is expected to result in cost increases, though pricing strategies are yet to be decided.
Q & A Highlights
Q: Can you explain the strategy behind the recent product launches and the increase in other expenses? Are these expenses recurring? A: The recent product launches, including the Classic 350 and Bullet Medallion Black, were part of our growth focus strategy. The increase in expenses, approximately INR70 crores, was mainly due to these launches and the EV brand launch. About INR20 crores was for the EV brand. Some of these expenses are one-time, related to the launches.
Q: What drove the strong margin expansion at Royal Enfield, and is it sustainable? A: The margin expansion was primarily due to better cost management and pricing discipline. There are no specific reasons beyond these factors.