Eicher Motors Q4FY21 results: Profit rises 73% YoY to Rs 526 crore; Approves dividend of Rs 17 per share

Eicher Motors on Thursday, May 27, 2021, reported a consolidated 72.91 per cent year-on-year (YoY) profit at Rs 526.14 crore for the quarter ended March 31, 2021. The company has posted a profit of Rs 304.28 crore in the corresponding quarter of the last financial year.

On a standalone basis, the company's net profit increased 35 per cent to Rs 468 crore as against Rs 346 crore in the same quarter last year.

The consolidated revenue from operations of the Indian manufacturer of motorcycles and commercial vehicles rose 33.15% to Rs 2940.33 crore in the period under consideration as compared to Rs 2,208.18 crore posted last year.

EBITDA grew 46.75 per cent YoY to Rs 634 crore as compared to Rs 432 crore posted last year. The EBITDA margin improved to 21.6 per cent in Q4FY21 as compared to 19.6 per cent.

Besides, the Board of Directors of the company has approved a dividend of Rs 17 per equity share for the financial year ended March 31, 2021; it is a subject of approval of the shareholders. The dividend will aggregate to Rs 464.67 crore @Rs 17 per share.

Royal Enfield sold 203,343 motorcycles during the quarter, an increase of 25 per cent from 163,083 motorcycles sold over the same period in FY20. Royal Enfield sold 609,403 motorcycles during the year, down 13 per cent from 697,582 motorcycles sold in FY2019-20.

Commenting on Eicher Motors' performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd., said, "It has been a challenging year for the industry with the COVID-19 pandemic leading to disruption in production, supply chain and retail operations. We remained agile and responded swiftly by reworking our immediate priorities and providing relief to communities as well as ensuring the safety and well-being of our employees, partners and customers. During the year, there were challenges also on account of factors such as supply chain constraints and commodity price increase. However, demand continues to be good. Royal Enfield witnessed very good pick up in the second half of the year, and registered a strong performance in Q4."

He added, "We have seen encouraging demand coming from rural as well as urban segments. The launch of the Meteor has been well received by consumers and has witnessed excellent response. We have also been able to significantly increase our retail market presence in India and globally through this year. The commercial vehicle industry also showed equal resilience and saw a good recovery in the latter half of the year. VECV gained market share across segments. In the heavy-duty segment, VECV volume grew by 6 per cent in FY21 compared to last year against a decline of 21 per cent in industry volume. Overall, both at Royal Enfield and at VECV, we have managed to tide over a tough year, and despite imminent challenges that persist, we remain steadfast on our strategic long term goals."

During the year, Royal Enfield's retail footprint in India increased from 1,521 stores across 1,200 cities to 2,056 stores across 1,750 cities. With the launch of more than 100 dealerships and more than 430 studio stores in India during FY 2020-21, Royal Enfield has further grown its network across urban, as well as rural markets.

For the March quarter, VECV's revenue from operations was Rs 3,602 crore, up 71.4 per cent from Rs 2,101 crore during the corresponding quarter last year. EBITDA was Rs 320 crores, significantly higher as compared to Rs 37 crore in the same period last year.

Through various measures, addressing revenue and cost, VECV was able to grow the EBITDA margin to 8.9 per cent during the quarter, from 1.8 per cent during the corresponding period last year. Profit After Tax for the quarter was Rs 127 crores as against a loss of Rs 26 crores for the same quarter last year. For the quarter, VECV recorded strong growth of 56 per cent with volumes of 18,167 units against 11,629 units during the same period last year.