Eicher Motors Limited (EML), the parent company of Royal Enfield, reported a rise in quarterly profit for the first time in the current fiscal, as sales picked up due to a strong festive season. Net profit for Eicher Motors was reported at ₹ 533 crore, a hike in 7 per cent year-on-year, compared to ₹ 499 crore reported during the same period last year. In all, Royal Enfield sold 1,99,000 motorcycles in the quarter, an increase of 5 per cent from the 1,89,000 motorcycles sold over the same period in financial year 2019-20.
Commenting on Eicher Motors' performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd, said, "The third quarter has seen steady business growth and encouraging performance across the board. Consumer sentiment and demand have improved, and this is reflected in our volumes for the quarter. At VECV, demand for commercial vehicles has been improving sequentially and we have seen encouraging performance during the quarter. At Royal Enfield as well, we saw encouraging pick up in demand and bookings over the quarter. This quarter, we launched the Meteor 350, an easy and accessible cruiser in India and across Europe, Thailand and Australia. The motorcycle has received excellent feedback from experts and consumers alike. In a bid to further grow our international markets, we launched our first flagship store in Tokyo, Japan, becoming the first Indian premium motorcycle brand to set up a standalone store in Japan. As we ride into 2021, we are very happy to pin yet another significant milestone on our journey, as this year marks the 120th year of the brand. We have several exciting initiatives planned to celebrate this incredible journey of pure motorcycling."
For the quarter ended December 31, 2020, VECV's revenue from operations increased by 23.9% to ₹ 2,680 crores against ₹ 2,164 crores in Q3 of last year. The EBITDA margin improved to 8.6% for the quarter against 6.4% during the corresponding quarter for the last year due to stringent cost reduction measures being undertaken. VECV recorded a profit of ₹ 58 crores, up by 89% during this quarter against a profit of Rs 30 Crores in Q3 last year.
Speaking on Royal Enfield's performance, Vinod K. Dasari, CEO, Royal Enfield said, "This quarter has been encouraging as we have exceeded pre-covid production levels and had our best-ever December performance till date. While we have been able to stabilise our supply chain to some degree there are still a few issues with erratic supplies, as well as increase in logistics and commodity costs. The demand has been steady and our bookings have stayed strong for the entire quarter. During the quarter we launched the Classic 350 in two new colorways along with alloy wheels and tubeless tyres. With the launch of the Meteor 350, and the simultaneous debut of the Royal Enfield Tripper, Royal Enfield App and the Make It Yours initiative, we have created a whole new seamless interactive and immersive brand purchase and ownership experience. Consumer response to MiY has been phenomenal. We have also witnessed healthy international market performance this quarter and are hopeful that the momentum will continue in the upcoming months as the market situation and consumer sentiment further improve."
Royal Enfield announced its entry into Japan with the company's first standalone, flagship store in Tokyo. With the launch of the new Royal Enfield Meteor 350, the company also announced the Make it Yours (MiY) tool, along with a new turn-by-turn navigation called the Royal Enfield Tripper. The Make it Yours initiative has also been introduced across Royal Enfield's apparel and riding gear range where customers can personalise their riding and lifestyle essentials like helmets and t-shirts. Royal Enfield is getting ready to launch several new products, including an all-new 650 cc cruiser based on the Royal Enfield 650 Twin platform. Also expected is a new 350 cc roadster, based on the Meteor 350.