Eicher Motors Limited announces its best ever performance for quarter ended June 30th, 2017

~ For the  quarter ended June 30, 2017, EML recorded its highest ever total income from operations at Rs 2,001  crores (net of excise duty), highest ever EBITDA at Rs 621 crores and Total Comprehensive Income at Rs 458 crores~

New Delhi, August 09, 2017: Eicher Motors Limited (EML) today announced the unaudited consolidated financial results for the first quarter ended June 30, 2017. The Board of Directors at Eicher Motors Limited approved the results with the performance highlights as follows:

EML’s consolidated results for Q1 ended June 30, 2017 as compared to corresponding period ended June 30, 2016

Particulars Q1 2017-18 Q1 2016-17 % growth
Total Income from operations (Net of Excise Duty) 2001 1556 28.6%
EBITDA 621 470 32.1%

(as a % of  Income from operations (Net of Excise Duty)

31.0% 30.2%
EBIT 575 431 33.6%
EBIT % 28.8% 27.7%
Profit After Tax 435 330 31.9%
PAT (%) 21.7% 21.2%
Share of EML in profit/(loss) of Joint ventures 25 47 -46.4%
Total Comprehensive Income 458 375 22.3%

Note:·                          All figures are Rs. Crores except where specified

 VE Commercial Vehicles’ consolidated results for Q1 ended June 30, 2017 as compared to corresponding period ended June 30, 2016

Particulars Q1 2017-18 Q1 2016-17 % growth
Total Income from operations (Net of Excise Duty) 1803 2139 -15.7%
EBITDA 149 194 -23.0%
EBITDA % 8.3% 9.1%
(as a % of  Income from operations (Net of Excise Duty)
Total Comprehensive Income 65 106 -38.4%
Total Comprehensive Income (%) 3.6% 5.0%

Note:· All figures are Rs.crores except where specified

Eicher Motors Limited (EML) recorded following sales volume and market share (MS) across both its businesses- Royal Enfield and EML’s joint venture with the Volvo Group – VE Commercial Vehicles (VECV)

Royal Enfield
Q1 2017-18 Q1 2016-17 Growth (%)
Total motorcycle sales 183,731 147,349 24.7%
VE Commercial Vehicles Limited
Q1 2017-18 Q1 2016-17 MS Q1 2017-18 MS Q1 2016-17
Eicher Cargo Trucks (3.5-5 tonne) 578 307 24% 14.8%
Eicher Light & Medium Duty Trucks (5-14 tonne) 4490 5871 33.3% 34.2%
Eicher Heavy Duty Trucks (16 tonne & above) 1407 3205 3.9% 6.1%
Eicher Buses (5 tonne and above) 3438 4219 20.9% 20%
Total Domestic Sales- Eicher Trucks and Buses

(3.5 tonne and above)

9913 13602 14.5% 14.6%
Exports 1588 2312 13% 17.4%
Volvo Trucks 82 157
Total 11583 16071 14.4% 15.1%

Royal Enfield posted its best ever performance in Quarter ended June 2017. In this quarter, Royal Enfield sold 183,731 motorcycles, registering its best ever quarterly sales volume and posting a growth of 24.7% over 147,349 motorcycles sold in the same period last year. Royal Enfield also posted its highest ever quarterly income from operations at Rs  2,001 crores (net of excise duty) for Q1 2017-18, a growth of  28.6% over the corresponding period last year.

Commenting on Royal Enfield’s performance, Siddhartha Lal Managing Director and CEO  Eicher Motors Ltd said, “Royal Enfield has performed extremely well in the first quarter of FY 2017-18 despite a number of issues in the domestic market like BS-IV transition and GST rollout that affected the industry. In the face of these challenges, Royal Enfield transitioned to the BS-IV norms with no BS-III inventory. We smoothly transitioned to GST regime without any disruptions”

Gaining popularity across the globe, the 14th edition of Himalayan Odyssey was flagged off from India Gate, New Delhi on July 08, 2017. This year Himalayan Odyssey witnessed a participation of 61 riders including 6 women. Considered as the holy grail of motorcycle rides across the world, the participants on the Himalayan Odyssey rode from Delhi all the way to Khardung-La – one of the world’s highest motorable roads over 18 days covering 2300 kilometres.

“Royal Enfield has been investing in building capacity and capabilities. In May 2017, Royal Enfield moved into its technical centre located at Leicester, UK. The area for office and testing is spread over 36,000 square feet and currently have more than 100 employees working on developing our upcoming platforms. Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally” he added

Commenting on VE Commercial Vehicles (VECV)’s performance Siddhartha said, “The CV industry was affected by the transition from BS-III to BS-IV emission norms and the implementation of GST  The industry grappled with the large BS-III inventory. The actual impact to the CV segment will be known only after the channel stocks normalise. However, as a result of all these issues in Q1 2017-18 VECV declined by 27.9% against an industry decline of 24.2% with a sale of 11583 units over 16071 units same period last year. In the month of June 2017, we reduced the channel stocks by more than 1000 units that could give us an advantage in the coming months when the channel stocks become normal.”

“Our joint venture with Eicher Polaris Pvt Ltd (EPPL) continues to be on track as we expand our network. We opened our first dealership outside India – in Nepal in July 2017. ” Siddhartha further added.

About Eicher Motors Limited:

Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a catalyst in the green revolution in India with the production of India’s first agricultural tractor in 1959. EML is now a leading player in the Indian automotive space. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The oldest motorcycle brand in continuous production world-wide, Royal Enfield has witnessed a huge surge in demand in the recent past, and is charting its course to be the leading player in the mid-sized motorcycle segment globally. EML’s joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets. EML’s joint venture with US based Polaris Industries Inc formed in 2012, Eicher Polaris Private Ltd. (EPPL) launched the Multix, a new 3-in-1 vehicle purpose built for the independent businessman in June 2015. For the twelve months ended March 2017, Eicher Motors recorded its highest ever total income of INR 7,033 crores (net of excise duty) which is approx USD 1.1 billion and is listed on the Bombay and National Stock Exchanges. As of April 1st 2016, Eicher Motors Limited became a part of the Nifty 50 Index.