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PAT grows 9%; Royal Enfield sales decline

Eicher Motors Ltd’s consolidated net profit rose 9% to ₹373 crore in the second quarter of current financial year as against ₹343 crore in the same period a year earlier.

The company’s revenue from operations, meanwhile, were up by 5.4% to ₹2,250 crore for the quarter under review. The same was ₹2,134 crore in the corresponding quarter of last year.

“The second quarter of the FY 2022 saw a remarkable performance by Royal Enfield in international markets with a growth of more than 130% over the corresponding period last year. Our consistent growth in volumes and global retail presence is testament to the company being on track to realise its vision of becoming the first premium global consumer brand from India,” Eicher Motors MD Siddhartha Lal said in a statement.

Lal said the company strengthened its product portfolio with the launch of the all new Classic 350. “The motorcycle takes forward the legacy of its legendary predecessor while significantly elevating the ride experience. The all-new Classic 350 has received resounding response from consumers across the country.”

“At VE Commercial Vehicles, we continued to deliver on our sustained growth momentum backed by a robust recovery in HD, LMD and Bus segments. Overall, with the market picking up over the festive season, consumer sentiment significantly improving over the year, we see that demand continues to be strong and outstripping supply. With the semiconductor and supply chain issue expected to ease off over the next quarter, we are optimistic and poised for growth,” Lal added.

Royal Enfield sold 123,515 motorcycles during the quarter, a decline of 17.2% from 149,120 motorcycles sold over the same period in FY21.

However, Royal Enfield ended the quarter with best ever performance in international markets for the second successive quarter with total exports at 17,922 units, more than 132% increase over 7,714 in the same period last year.

Speaking about Royal Enfield’s business through the quarter, Govindarajan, Executive Director, Royal Enfield said, “While this quarter was impacted by the ongoing global shortage of semiconductor chips, we have remained engaged with our suppliers to mitigate the situation and maximize supplies. Moving forward, we foresee the supply chain situation improving gradually and expect the availability of parts to increase beginning Q3-FY22 which will enable us to further ramp up production.”

The company said its performance in international markets has been consistently improving with close to 4X growth in exports as compared to FY 2018-19 when annual exports stood at 19,721 motorcycles.

For the September quarter, VECV’s revenue from operations was ₹3153 crore, up by 80% from ₹ ₹1,753 crore in the same period last year. Profit after tax stood at ₹18 crore during the quarter against a loss of ₹7.2 crores last year.

On Wednesday, Eicher Motors shares were down over 1% to close at ₹2,515.60 apiece on NSE.

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