For Q1 ending March 31, 2014 Eicher Motors Ltd records highest ever total income from operations at Rs 1924.2 crores, highest ever EBIT at Rs 174.2 crores and highest ever PAT at Rs 156.2 crores
Eicher Motors Limited today announced the unaudited consolidated financial results for the first quarter ended March 31, 2014.
The Board of Directors at Eicher Motors Limited approved the results with the performance highlights as follows:
Consolidated Results for quarter ended 31st March 2014 as compared to quarter ended 31st March 2013
Note: All figures are Rs. crores except where specified
Standalone Results for quarter ended 31st March 2014 as compared to quarter ended 31st March 2013
Eicher Motors Limited (EML) reported the following sales numbers and market share (MS) across both its businesses- Royal Enfield and EML’s 50:50 joint venture with the Volvo Group – VE Commercial Vehicles (VECV)
Commenting on the company’s performance Mr. Siddhartha Lal, Managing Director & CEO Eicher Motors Ltd said “While the industry continues to decline, Eicher Motors continued with its strong run and reported its best ever quarter results registering a 11.6% growth and posting the highest ever quarterly income from operations at Rs 1924.2 crores for Q1 2014”
Commenting on VECV’s performance Mr Siddhartha Lal, said, “The commercial vehicle industry continues to battle the enormous downturn that has been affecting this sector for more than 30 months now. The first quarter of 2014 has been particularly tough that saw the domestic industry (5 tonne and above) decline by 18.3%. Despite tough conditions, VECV has continued to perform well. With the recent commercial launch of the Eicher Pro-1000 and Pro-3000 range of trucks and buses, we aim to meet the needs of the emerging mid-premium market segment.”
Q1 2014 has been the best ever quarter at Royal Enfield, Eicher Motors’standalone business unit, with record sales of 64268 units, a growth of 85% over Q1 2013. This has resulted in a significant increase of 155.9 % in Earnings before interest and tax (EBIT) at Rs. 135.9 crores in Q1 2014 as compared to Rs 53.1 crores in Q1 2013. Eicher Motors has been able to extract significant operating leverage in Q1 2014 and recorded its best ever operating margin (EBIT) at 21.4%.
Elucidating on Royal Enfield, Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “Royal Enfield continues to be very strong Q1 2014. We had a very strong volume growth this quarter and we do continue maintain an extremely healthy order book. It has been just more than a year since Royal Enfield started commercial production at the new state-of-the-art facility in Oragadam. The new plant is shaping up really well and it has now started contributing significantly to our production volumes. In the first quarter of 2014, the Oragadam facility has produced more than 10,000 units per month and that number is poised to go up further as the year progresses.”
Concluding his remarks, Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “At Eicher, we continue to focus on the long term growth strategy and we are working hard towards meeting our business objectives and goals. VECV has been extremely steady despite the stressful environment the industry is going through. Eicher introduced their new ‘Pro Series’ of trucks at the 12th Auto Expo at New Delhi. The new Pro Series range of trucks meets the needs of the emerging mid-premium market segment and also is a significant step for VECV towards their aim to improve transportation efficiency in India and the developing markets via relevant modernization. Royal Enfield continues to perform exceptionally well posting record sales and production numbers this quarter and working its way to become a leader in the global mid-sized motorcycling industry. Investments for the Oragadam facility and Royal Enfield business continue as planned for CY 2014. We are working closely with our international channel partners this year and we have scheduled many strategic rides and events in our international markets in the coming months”, said Mr. Lal.
