Eicher reports best-ever profit, revenues in June quarter
Eicher Motors today reported its best consolidated net profit in a quarter at Rs 576 crore in the April-June period, driven by robust motorcycle sales.
The company posted 25.36 percent rise in net profit in the first quarter ended June 30 from Rs 460 crore in April-June period of 2017-18.
Consolidated total revenue from operations stood at Rs 2,548 crore for the quarter under review, the company's highest ever so far in a quarter. It stood at Rs 2,255 crore in the year-ago period.
During the period under review, the maker of niche Royal Enfield bikes sold 2,25,286 units, registering a growth of 23 percent over 1,83,731 units in the same period of last year.
"We continue to make significant progress on all the targets that we have set for ourselves and are happy to report strong financials quarter on quarter," Eicher Motors Managing Director and CEO Siddhartha Lal said in a statement.
To better cater to demand, the company has commenced work on the second phase of its Vallam Vadagal manufacturing facility and should begin production by mid of FY20, he added.
Besides, Chennai Technology Centre is on track and the company plans to complete the installation of all testing and validation equipment by October this year, Lal said.
He added that the company will start bookings for twins -- Interceptor 650 and Continental GT 650 -- in a phased manner starting from the third quarter of this financial year, across geographies.
Volvo Eicher Commercial Vehicles (VECV), the company's joint venture with Sweden's AB Volvo, saw revenue from operations increase by 45 percent to Rs 2,609 crore in the first quarter from Rs 1,803 crore in the same period of last year.
Profit after tax rose by 78 percent to Rs 118 crore from Rs 67 crore in April-June quarter of last year.
"We are working to strengthen our market share across segments over the forthcoming quarters. By leveraging new technologies and new products, by strengthening marketing activities and supply chain for faster availability of service and spares, VECV is truly gearing up for growth in the coming months," Lal said.
Shares of Eicher Motors today closed flat at Rs 27,484.25 per scrip on BSE.
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