Eicher Motors Announces Financial Results For Quarter & Year Ended March 31, 2020

Eicher Motors Limited has announced its audited consolidated financial results for the quarter and year ended  March 31, 2020.

For the quarter ended March 31, 2020, Eicher Motors’ total revenue from operations was recorded at Rs. 2,208 crores, down by 12% as compared to Rs. 2,500 crores in the corresponding quarter of FY 2018-19; EBITDA was Rs. 432 crores, down 37% as compared to Rs. 685 crores in the same quarter of the previous financial year; Profit After Tax was Rs. 304 crores as compared to Rs. 545 crores during the same period last year. Royal Enfield sold 163,083 motorcycles in the quarter, a decline of 17% from 197,567 motorcycles sold over the same period in FY 2018-19.

For the Financial Year ended March 31, 2020, Royal Enfield’s total revenue from operations was down by 7% to Rs. 9,154 crores, compared to Rs. 9,797 crores recorded for the year ended March 2019; EBITDA was Rs. 2,180 crores, down by 25% compared to Rs 2,903 crores; Profit After Tax was recorded at Rs. 1,827 crores as compared to Rs. 2,203 crores in the same period last year. Royal Enfield sold 697,582 motorcycles in the year, down 15% from 822,724 motorcycles sold in FY 2018-19. Motorcycle sales to international markets have shown significant growth of 96% at close to 38,700 motorcycles, over the previous financial year.

The last quarter of this fiscal was particularly challenging in the wake of the unprecedented coronavirus pandemic. Royal Enfield’s manufacturing and retail operations were suspended between March 23rd and May 5th as per Government directives. The company has since resumed operations, and more than 90% of its retail network is now operational. The Eicher Motors Group has pledged an initial CSR outlay of Rs. 50 crores towards various immediate relief and support measures to tackle the pandemic.

Royal Enfield continues to strengthen its distribution network in India and internationally. During this quarter, Royal Enfield added 100 new Studio Stores, taking the overall retail touchpoints to 1,521 across India; at 921 dealerships and 600 Studio Stores. Royal Enfield significantly expanded its international market network during the year 2019-20. Exclusive stores have now almost doubled from 42 stores in 18 countries to 77 stores in 21 countries; 10 stores were added during this quarter.

Royal Enfield has been among the first automotive companies in India to successfully sell all existing inventory of BS IV motorcycles, thereby becoming fully compliant with the new BS VI emission norm adequately ahead of the mandated timeline. Thereafter, the company has ensured a seamless transition from BS IV to BS VI across its entire motorcycle portfolio. The company introduced BS VI compliant motorcycles in early January, with the Classic 350 dual-channel ABS and subsequently all motorcycles have now transitioned to BS VI.

In keeping with the strategic product pipeline, Royal Enfield announced the end of production of the 500cc single-cylinder, long-stroke, unit construction engine motorcycles in India. To commemorate the legendary motorcycle, a special, end-of-build edition was launched - The Classic 500 Tribute Black Limited Edition - and these were sold through an online sale.

In the last quarter, the first ever Slideschool edition was successfully held at Big Rock Dirt Park in Bangalore. The Slide School is a step towards being a more experiential brand and providing opportunities to build accessible entry into flat track racing. The Slideschool will be rolled out across different cities in the country. Royal Enfield also held the 2nd edition of Winter White Out wherein 11 riders explored the treacherous routes amidst the mighty Himalayas on their Royal Enfields. To further engage the global community, Royal Enfield organized marquee rides including the Tour of Thailand (3rd edition) and Tour of Indonesia (2nd edition).

For the quarter ended 31 March 2020, VECV’s revenue from operations was Rs. 2,101 crores, down by 35% from Rs. 3,209 crores in the same period last year; EBITDA was Rs. 38 crores, down 86% as compared to Rs 274 crores in the corresponding quarter of the previous year. There was a loss of Rs. 26 crores as compared to Profit After Tax of Rs. 139 crores during the same period last year.  VECV sold 11,629 trucks and buses in the quarter, a decline of 45% from 21,010 trucks and buses sold over the same period in the last financial year.