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Eicher Q4 net up 16 pc at Rs 610 cr; lines up Rs 1,100 cr capex for current fiscal

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Eicher Motors on Friday said its consolidated net profit after tax increased by 16 per cent to Rs 610 crore for the fourth quarter ended March 31, 2022.

The company had reported a net profit after tax of Rs 526 crore in the January-March quarter of the 2020-21 fiscal.

Total revenue from operations rose to Rs 3,193 crore in the fourth quarter as compared to Rs 2,940 crore in the same period of FY21, Eicher Motors said in a regulatory filing.

For the year ended March 31, 2022, the company posted a consolidated net profit after tax of Rs 1,677 crore as against Rs 1,347 crore in 2020-21 fiscal.Total revenue from operations rose to Rs 10,298 crore during the last fiscal as compared with Rs 8,720 crore in FY21.

This was the company’s highest-ever revenue in the fourth quarter as well as the full fiscal, it added.

The company said its board approved a dividend of Rs 21 per share of face value of Re 1 each for 2021-22.

Royal Enfield, the company’s two-wheeler arm, sold 1,82,125 motorcycles in the fourth quarter, a dip of 10 per cent from 2,03,343 units sold in the year-ago period.

During 2021-22, Royal Enfield registered motorcycle sales of 5,95,474, down 2 per cent from 6,09,403 units in 2020-21.

VECV, the company’s JV with Volvo Group, reported revenue from operations at Rs 12,724 crore for the last fiscal, as against Rs 8,676 crore in FY21.

Profit after tax stood at Rs 111 crore compared to Rs 57 crore last year.VECV recorded sales of 57,077 vehicles for 2021-22, marking a growth of 38 per cent over 41,268 units in 2020-21.

“The year gone by was very significant for Eicher Motors, as we registered considerable progress towards our long term strategic business vision,” Eicher Motors Managing Director Siddhartha Lal noted.

Over the last eight years, the company has made concerted efforts in becoming a premium, global player, concentrating on some of the toughest motorcycle markets in the world, with an ambition to sustainably grow overseas presence and business, he added.

“During this year, our international markets growth story showed stellar performance with more than 100 per cent growth YoY as we continued to deliver sustained results in the domestic market,” Lal said.

At VECV, the company’s performance was extremely encouraging, he added.Royal Enfield’s newly-appointed CEO B Govindarajan noted that despite persistent challenges on the supply front and COVID-induced disruptions last year, the two-wheeler maker has made remarkable progress regarding strategic long-term vision.

“As we move forward, we remain focused on creating products and offering experiences that stay true to our philosophy of pure motorcycling. As the supply chain settles and the market starts getting buoyant, we are ready to ramp up and grow Royal Enfield to new heights,” he added.

In an online press conference, the company’s management stated that the automaker has lined up about Rs 1,100 crore capital expenditure (capex) for both Royal Enfield and VECV businesses in the current fiscal.

On its plans regarding entry into the EV space, Lal said the company has been making a lot of progress internally.

“We are not a company which would rush into the market with a half baked product and hope for the best..we are not going to see them in the next few years..we may not be the first in the market but we will be best in the market for sure,” he noted. 

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