New Cars, Bikes, Latest News, Reviews, Photos

Royal Enfield and Eicher VECV sales up in Q3 2014

0

Eicher Motors Limited for Jan-Sep 2014 has posted its best ever total income from operations at Rs 6444.5 crores and best ever EBIT at 10.1%. For Q3 2014, Eicher Motors reports best ever standalone quarterly total income from operations at Rs 821.2 crores up from Rs 459 crores in Q2 2013, equating to 78.9% growth.

Royal Enfield India sales
Eicher Motors Limited announces 09 months/Q3 Results for CY 2014

Royal Enfield posted its best ever quarter results in Q3 2014 with YoY growth of 69.9% having sold 81,977 units over 48,242 units sold in Q3 2013, extracting maximum operating leverage having improved EBIT margin to 23.4% in Q3 2014 over 17.5% in Q3 2013.

Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited has set sight on being global mid-sized motorcycling segment leaders, and are working continually to that end. In international markets, Royal Enfield oraganised events in UK, US and Europe in the last quarter.

Consolidated Results 09 Months CY 2014 as compared to 09 Months CY 2013 and Q3 2014 as compared to Q3 2013

09 Months 2014 09 Months 2013 % Growth Q3 2014 Q3 2013 % Growth
Total income from operations  6,444.5  5,130.3 25.6% 2,275  1,736.1 31%
Earnings before interest and tax (EBIT)      651.9      456 43%      248.9      176.4 41%
EBIT % 10.1% 8.9% 10.9% 10.2%
Profit After Tax      520.8      404.2 28.8%      186.1      145.6 27.8%

 Note: All figures are Rs.crores except where specified

 Standalone Results 09 Months 2014 as compared to 09 Months 2013 and Q3 2014 as compared to Q3 2013

09 Months 2014 09 Months 2013 % Growth Q3 2014 Q3 2013 % Growth
Total income from operations  2,203.1  1,174.6 87.6%      821.2    459 78.9%
Earnings before interest and tax (EBIT)      502.9      194.2 159%      192.4      80.5 139%
EBIT % 22.8% 16.5% 23.4% 17.5%
Profit After Tax (PAT)      434.8      211.6 105.5%      141      61.8 128.2%

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 09 Months 2014 as compared to 09 Months 2013 and Q3 2014 as compared to Q3 2013 

Q3 2014 Q3 2013 MS Q3 2014 MS Q3 2013 09 Months 2014 09 Months 2013 MS 09 Months 2014 MS 09 Months

2013

VE Commercial Vehicles Ltd (VECV)
Eicher Heavy Duty Trucks

(16 Tonne and above)

1338 1319 3.4% 4.3% 4190 4717 3.7% 4.5%
Eicher Light and Medium

Duty Trucks

(5 Tonne – 14 Tonne)

5119 4856 33.6% 29.1% 15098 18219 32.5% 29.7%
Eicher Buses

(5 Tonne and above)

1850 1858 14.4% 12.3% 7040 7377 15.7% 13.9%
Total Domestic Sales- Eicher Trucks and Buses

(5 Tonne and above)

8307 8033 12.3% 12.9% 26328 30313 12.9% 13.8%
Exports 1237 1171 4336 2185
Volvo Trucks 271 224 627 486
Total Sales – VECV 9815 9428 31291 32984
Royal Enfield
Motorcycles 81977 48242 220377 123018

At Goodwood Revival Festival, UK Royal Enfield previewed apparel and accessories inspired by despatch riders of the Great Wars, a collection which explores the brand’s rich motorcycling heritage. In August, Royal Enfield headed to Bonneville Speed Trials at Utah, USA to put 2 specially modified Continental GTs prepared by ace performance tuner Matt Capri to test. Royal Enfield also headed to Isle of Man Classic TT as former Royal Enfield racer Steve Linsdell participated in the ‘Classic Lap of Honour’. In August, Royal Enfield announced KSR Group as its distributor in Germany.

Regarding VECV, Siddhartha says commercial vehicle industry has been in slump for almost 36 months but some positives are coming about now. VECV reported marginal growth in Heavy Duty and Light and Medium Duty (LMD) segments. Bus sales have been on a decline. In Q# 2014, VECV outpaced the industry in both LMD and Buses segment. In the 5-14 tonne segment VECV’s Eicher branded trucks reported market share of 33.6% in Q3 2014 up from 29.1% in Q3 2013. In Buses segment, market share increased to 14.4% in Q3 2014 from 12.3% in Q3 2013. VECV reports 5.6% growth in export markets with sales of 1237 units in Q# 2014. Pro-Series Heavy Duty truck range is to be introduced in Q4 2014. The JV with Polaris, Eicher-Polaris Pvt Ltd (EPPL) continues to meet strategic milestones and is to be launched in 2015.