Eicher Motors Limited, the parent company of Royal Enfield, has released its financial results for the first quarter of Financial Year 2021-22. In the quarter that ended with June 30, 2021, the company's total revenue from operations was recorded at Rs. 1,974 crores, witnessing a growth of 141 per cent as compared to Rs. 818 crores revenue reported in the corresponding quarter of FY 2020-21. In the same April to June 2021 period, the company reported an EBITDA of Rs. 363 crores as compared to Rs. 4 crores in the same quarter of the previous financial year. The company's Profit After Tax (PAT), on the other hand, stood at Rs. 237 crores as compared to a loss of Rs. 55 crores that was reported in the Q1 of FY 2020-21.
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Eicher Motors' total revenue from operations was recorded at Rs. 1,974 crores, witnessing a growth of 141 per cent over the same period last year
The company's motorcycle brand, Royal Enfield, at the same time, sold 122,170 motorcycles in the quarter, witnessing a growth of 109 per cent compared to 58,383 motorcycles sold over the same period in FY 2020-21. However, we have to take into account that India was under a nationwide lockdown for the most part of the April to June period in 2020. So, given the fact that the market situation was very different during both these quarters, it won't be ideal to compare them as the growth is a one-off anomaly. Having said that Royal Enfield ended the quarter with its best-ever performance in international markets. The company's total exports stood at 17,493 units, more than 400 per cent increase over 3,444 units sold in the same period last year, and an 83 per cent increase over 9,572 units sold during the pre-COVID period of Q1 of FY2019-20.
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Siddhartha Lal, MD, Eicher Motors Limited says global shortage of semiconductors continues to be a concern and is likely to hamper production for the ongoing quarter
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 the long-term prospects 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."
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Royal Enfield CEO Vinod Dasari, who has stepped down from his current position, says the company is optimistic about a stronger recovery in second half of FY2022
Vinod K. Dasari, who recently announced stepping down from his current position as CEO, Royal Enfield, said, "Despite challenging market conditions, we continued to stay committed to our core objective of being a truly global motorcycling brand." Talking about expansion projects he added, "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."
Dasari also said that constraints due to local and global supply chain disruptions continue to impact Royal Enfield, and the company is closely working with its suppliers to quickly resolve these issues. However, the company is optimistic about a stronger recovery and expects the supply chain to stabilise during the second half of the year. This optimism is backed by the growing preference for personal mobility among consumers, improving economy and demand sentiment, and our strong product pipeline.
