Thursday, September 29, 2022
HomeAutoRoyal Enfield's parent company Eicher Motors reports 14% drop in net profit

Royal Enfield’s parent company Eicher Motors reports 14% drop in net profit

Royal Enfield’s parent company Eicher Motors Limited (EML) has declared a net profit of ₹456 crore for the third quarter of the current fiscal, up from ₹533 crore in the year-ago report. The company has registered a decline of 14 percent. Eicher said in a statement that for the quarter ended December 31 of FY 2021, the company reported a growth of 1.9 per cent to total revenue of Rs 2,881 crore, compared to Rs 2,881 crore during the same period of the previous financial year 2020-21. . 672 crores more than that. Whereas EBITDA stood at Rs.582 crores as compared to Rs.672 crores in the corresponding quarter of last financial year.

Royal Enfield sold 1,67,664 motorcycles between October and December, 2022, a decline of 15.6 per cent from 1,98,557 motorcycles sold in the same period in FY 2020-21. However, Royal Enfield continued its strong growth momentum in the international markets with total exports of 17,036 units, a growth of 57 per cent as compared to 10,833 units in the same period last year.

According to the company, the global shortage of semiconductor chips and the onset of the third wave of COVID-19 with Omicron variants affected the quarterly results. However, Eicher Motors reported 28 per cent growth in revenue and Rs. Registered a significant improvement in sequential growth at 35.3 per cent with EBITDA of over 430 crores.

Commenting on the performance of Eicher Motors, Siddharth Lal, MD, Eicher Motors Ltd. said, “The continued global shortage of semiconductor chips and the onset of the third wave of the COVID-19 pandemic posed a challenge for the industry at large. In the quarter, we are working towards creating an alternative vendor ecosystem to mitigate the impact of shortages on the supply front. Our performance has remained resilient despite the challenges. Our international performance has been strong, and the new Classic 350 Driven by increased consumer interest in India and global markets, we have achieved encouraging growth despite supply chain challenges. 

For information, let us tell you that Royal Enfield is working on several new models, including the scrambler-style 411 cc Royal Enfield Scream, which is expected to be launched very soon. Along with the development of the Royal Enfield Super Meteor 650, new models in the 650 twin platform and the faster Royal Enfield Shotgun 650 are also in the works. 

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