Eicher VECV 15.52% sales decline for 2013: Royal Enfield saves the year big time

Eicher Motors Limited announces Annual Results for CY 2013 ended with the highest ever total income from operations at Rs. 6809.8 crores, and highest ever operating profit (EBIT) of Rs 583.2 crores. Dividend is recommended at 300%.

Consolidated Results CY 2013 as compared to CY 2012 and Q4 2013 as compared to Q4 2012:

CY 2013 CY 2012 %Growth Q4 2013 Q4 2012 % Growth
Total Income from operations

6,809.8

6,389.9

6.6%

1,679.5

1,653.6

1.6%

Earnings before interest and tax (EBIT)

583.2

466.9

24.9%

127.2

93.5

36.1%

EBIT %

8.6%

7.3%

7.6%

5.7%

Profit After Tax

525.4

474.9

10.6%

121.2

105.2

15.3%

Note:  

  • ·         All figures are Rs. crores except where specified 

 
Eicher_IndiaStandalone Results CY 2013 as compared to CY 2012 and Q4 2013 as compared to Q4 2012:

CY 2013 CY 2012 %Growth Q4 2013 Q4 2012 % Growth
Total Income from operations

1702.5

1049.3

62.3%

527.9

296.7

77.9%

Earnings before interest and tax (EBIT)

283.3

128.3

120.9%

96.6

29.4

228.2%

EBIT%

16.6%

12.2%

18.3%

9.9%

Profit After Tax

278.6

144.8

92.5%

74.4

34.2

117.9%

Note:  

  • ·         All figures are Rs. crores except where specified

Eicher Motors Limited (EML) reported the following sales numbers and market share (MS) across both its divisions – Royal Enfield and EML’s 50:50 joint venture with the Volvo Group – VE Commercial Vehicles (VECV)

Volumes CY 2013 as compared to CY 2012 and Q4 2013 as compared to Q4 2012:

 

Q4 2013

Q4 2012

MS 2013 (%)

MS 2012 (%)

CY 2013

CY 2012

MS 2013 (%)

MS 2012 (%)

VE Commercial Vehicles (VECV)

Eicher Heavy Duty Trucks
(16 Tonne and above)

1,024

1,887

3.9

5.2

5,741

7,699

4.4

3.9

Eicher Light and Medium Duty Trucks
(5Tonne-14Tonne)

4,957

7,591

33.3

35.0

23,176

29,541

30.4

31.4

Eicher Buses
(5 Tonne and above)

956

1,368

10.8

11.7

8,333

8,521

13.5

12.0

Total Domestic Sales- Eicher Trucks and Buses
(5 Tonne and above)

6,937

10,846

13.9

15.6

37,250

45,761

13.8

12.7

Exports

1,115

696

-

-

3,300

2,501

-

-

Volvo Trucks

215

193

-

-

701

569

-

-

Total Sales- VECV

8,267

11,735

-

-

41,251

48,831

-

-

Royal Enfield

Motorcycles

55,101

31,968

-

-

178,121

113,432

-

-

Commenting on the company’s performance Mr. Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “While the industry continues with its down trend given the Indian economic scenario, Eicher Motors has once again reported a robust financial performance. For CY 2013, we have recorded our highest ever total income from operations at Rs 6,809.8 crores. We have also recorded our highest ever operating profit of Rs 583.2 crores for the same period. ”

On VECV’s performance Mr Lal said, “We continue to work towards increasing our overall market share in commercial vehicles through our 50:50 joint venture with the Volvo Group – VE Commercial Vehicles Limited. For CY 2013, while the industry declined by 32.5%, we improved our Heavy Duty market share to 4.4% from 3.9% in CY 2012. In addition, we have also continued with our strong performance in the bus segment where we have improved our market share to 13.5% in CY 2013 from 12.0% in CY 2012.”

Concluding his remarks on the annual results for CY 2013, Mr Lal said, “2013 has been a very significant year for Eicher Motors across all its businesses. While our stellar business model has ensured profitability even in this difficult period, its success has also enabled us to invest in our future- by building world-class infrastructure and introducing highly differentiated cutting edge products. As we work towards meeting our long term business objectives and goals, to mirror our growth and future direction, we have refreshed Eicher’s visual identity. The new identity captures the brand’s growth trajectory with a forward tilt element. The Eicher logo unit consisting of the word mark and the horse head is now leaner and sharper as compared to the previous unit. Eicher red has been identified as the corporate brand color while the product brand, used by VECV’s Eicher Trucks and Buses (ETB) division will also have a shade of blue with the Eicher red. In addition, a full new look–feel system has been created to complete the visual identity. The refreshed identity will be rolled out across various internal and external touch-points in a phased manner, starting this month.”

“In December 2013, VECV’s Eicher Trucks and Buses division (ETB) launched the future of Indian trucking with the introduction of its “Pro series” range of trucks and buses, ranging from 5-49 tonne. This was a giant step for us. The next generation of Eicher trucks and buses aims to continuously improve transportation efficiency in India and the developing markets via relevant modernization, thereby reducing logistics costs for goods and people leading to economic growth and productivity. Earlier in 2013, VECV’s Medium Duty Engine Plant (MDEP) at Pithampur, Madhya Pradesh began commercial production. The MDEP plant will produce 5 and 8 litre Euro VI compliant base engines for Volvo’s global requirements. In addition, the same base engine will be used to produce the most advanced BS III & IV compliant engines for Eicher’s heavy duty trucks and buses for Indian and export markets. This engine platform gives us a distinct competitive advantage in the industry”, he added.

“Eicher Motors 50:50 joint venture with Polaris Industries continues as per plans, meeting timelines and project milestones. Construction at the Eicher-Polaris plant in Jaipur continues on full swing and the expected start of production is in 2015”, he added.