Royal Enfield's total revenue from operations rose 11 per cent in the second quarter of the current financial year (July - September 2018), to Rs. 2,408 crore, compared to the same period last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs. 729 crore, up by 7 per cent from Rs. 683 crore for the same period last year. Profit after tax grew by 6 per cent to Rs. 549 crore from Rs. 518 crore in the same period last year. In all, Royal Enfield sold 2,09,963 motorcycles in the quarter, a growth of 4 per cent from 2,02,744 motorcycles sold in the same period last year.
Commenting on Royal Enfield's performance, Siddhartha Lal, Managing Director and CEO Eicher Motors Ltd, said, "Despite several challenges that came up during the quarter, Royal Enfield recorded a strong performance in Q2 2019. The highlight of the quarter was the global media ride and launch of our 650 Twins at Santa Cruz, California North America in September 2018. Both these motorcycles - Interceptor 650 and Continental GT 650 - were extremely well received by the global motorcycle press who appreciated the simple design and fun riding experience. The 650 Twins are being introduced across our key markets in a phased manner globally. We launched the motorcycles in Europe at the EICMA Motor show in Milan last week, and we are now all set to launch these motorcycles here in India later this week. Participants at Rider Mania can also book a test ride by pre-registering on the website."
This year at EICMA 2018, we showcased the 'Concept KX' prototype - a V-Twin motorcycle developed by Royal Enfield's design and engineering teams in India and the UK. Concept KX is inspired by Royal Enfield's original Model KX of the late 1930s and has been developed from scratch in just six months this year," Siddhartha added.
Royal Enfield's next big launch is the two 650 Twins in India, which will be launched on November 14. The two motorcycles - the Royal Enfield Interceptor 650, and the Royal Enfield Continental GT 650, are expected to be priced competitively, and will be aimed at making existing Royal Enfield owners upgrade to the new models with a new 650 cc, parallel-twin engine. The two new models will also be positioned as Royal Enfield's first global products, and will aim to increase exports of the Indian motorcycle brand, which has been struggling to make a mark globally. Less than 5 per cent of Royal Enfield's overall sales are attributed to exports.
In the international markets, Royal Enfield continues to expand its footprint in South East Asia. Royal Enfield opened its third store in Thailand at Chiang Mai. Towards growing the Royal Enfield community outside India, Royal Enfield organised the second edition of REUNION in Colombia at Quindio and received good participation from the customers. In September, Royal Enfield raced the custom built Bonneville racer at the Salt Flats in Utah, USA at a record speed of 157 miles per hour, demonstrating the versatility and capability of the brand new Twins' engine. Royal Enfield built the motorcycle together with S&S Cycle and Harris Performance - further strengthening the reputation of Royal Enfield motorcycles as the perfect canvas for customisation.
