Royal Enfield revenue grows to Rs 2,408 crores for Q3 – Classic 350 best seller
Royal Enfield has posted total revenue from operations at Rs 2,408 crores and net profits at Rs 549 crores for quarter ended September 30, 2018. More than 50% sales come from their Classic 350 motorcycle.
Royal Enfield announced their unaudited consolidated financial results for Q3 2018. During the past quarter, the company’s total revenue from operations increased 11% to Rs 2,408 crores as compared to total revenue reported in the same quarter of the previous year.
EBITDA increased 7% to Rs 729 crores as compared to Rs 683 crores during the same period in the previous year while Profit After Tax stood at Rs 549 crores, up 6% as compared to Rs 518 crores reported in the same quarter of the previous year.
In Q3 2018, the company sold a total of 2,09,963 motorcycles resulting in growth of 4% as compared to 2,02,744 units sold in the same period of the previous year. Operating margins however, reduced to 30.3% from 31.5% in the year ago period. About 65% of total sales were thanks to the Classic 350, best selling RE motorcycle.
Raw material costs increased 10.3% to Rs 1,206.6 crores while employee benefit costs also increased 21.4% to Rs 176 crores. The company’s Chennai plant also suffered in the last week of September when workers staged a walk out demanding higher pay. During the period of the strike, Royal Enfield suffered loss of production of 25,000 motorcycles.
The highlights of the past quarter saw the debut of Royal Enfield Interceptor 650 and Continental GT 650. Both the bikes are getting ready for India launch. At the EICMA Show, the company had the Bobber Concept KX, which is powered by a 838 cc V-Twin.
In August 2018, the company also launched the Classic Signals 350 in celebration of 65 years of association with the Indian Armed Forces. The Classic Signals 350 was presented in two color options of Airborne Blue and Stormrider Sand and was the first motorcycle in India to receive dual channel Anti Lock Braking System. Royal Enfield plans to introduce the ABS system across all motorcycles in its range in a phased manner in accordance with new safety norms coming into effect.