Eicher Motors reported a profit after tax (PAT) of Rs. 610 crore between January and March 2022, up 16 percent from the Rs. 526 crore profit reported during the same period in FY2021.
Eicher Motors Limited (EML), Royal Enfield’s parent business, has revealed its financial results for the fourth quarter of Financial Year 2021-22. The firm made a profit after tax (PAT) of 610 crore between January and March 2022, a 16 percent increase over the 526 crore profit made during the same period in FY2021. Eicher Motors also recorded an all-time high revenue of 3,193 crore in the quarter that ended on March 31, 2022, up 8.6% from 2,940 crore in the equivalent quarter of FY 2020-21. Royal Enfield, the company’s motorcycle brand, sold 182,125 units during the same period, down 10% from the 203,343 bikes sold during the same period in FY 2021.
Eicher Motors’ PAT for the whole financial year, from April 2021 to March 2022, was 1,677 crore, up 24.5 percent over the previous year’s 1,347 crore profit. The company’s overall income from operations reached an all-time high of 10,298 crore, up 18.1% from the previous year’s figure of 8,720 crore. Royal Enfield’s solid performance in foreign markets, according to the business, boosted the increase.
Eicher Motors’ profit after tax (PAT) increased by 24.5 per cent from April 2021 to March 2022, compared to a profit of 1,347 crores in the same period the previous year.
Siddhartha Lal, Managing Director of Eicher Motors Ltd., commented on the company’s success during the year: “The previous year was a watershed moment for Eicher Motors Limited, as we made substantial progress toward our long-term strategic business strategy. We’ve worked hard over the past eight years to establish ourselves as a premium, global player, focusing on some of the hardest motorcycle markets in the world with the goal of expanding our international footprint and company in a sustainable manner. We have built a niche for ourselves internationally via a solid product strategy and development process, as well as a targeted business approach. Our overseas markets growth story was outstanding this year, with more than 100% YoY growth, while we continued to generate consistent results in the local market.”
Volvo Eicher Commercial Vehicles (VECV) reported a roughly 47 per cent increase in revenue for the fiscal year that ended on March 31, 2022, to Rs 12,724 crore, up from Rs 8.676 crore in FY2021. In comparison to the 57 crore profit in FY2021, the firm recorded an almost 2-fold increase in profit of 111 crores. The firm sold 57,077 automobiles between April 2021 and March 2022, a 38 per cent increase over the 41,268 vehicles sold in FY 2020-21.
Two new local assembly operations in Colombia and Thailand have bolstered Royal Enfield’s worldwide reach. In Buenos Aires, Argentina, the firm already has a CKD unit. The assembly plants are meant to serve as nodal centres for all other nations in Latin America and Southeast Asia, in addition to responding to local market needs. Royal Enfield has increased its worldwide network by opening freestanding flagship locations in Singapore and the Netherlands, bringing the company’s global presence to more than 60 countries.
Royal Enfield also launched two new models to its lineup during the previous fiscal year: the next-generation Classic 350 and the Himalayan Scram 411. Siddhartha Lal described the former as follows: “The Royal Enfield Classic 350 has been our most popular motorbike since its inception in 2008, and this year we marked a significant milestone by transitioning the Classic to the all-new J-series chassis. The new introduction has been a big success, and the Classic continues to be the most popular middleweight motorbike in India.”
B. Govindarajan has been named the new CEO of Royal Enfield and Wholetime Director of EML by Eicher Motors. Govindarajan has been the Executive Director of Royal Enfield from August 2021. Since 2013, he has served as RE’s Chief Operating Officer.
