Royal Enfield new logo and 85% sales growth in Q1 2014
Q1 2014 is Royal Enfield’s best ever quarter with sales of 64268 units, equating to 85% sales growth over Q1 2013 when 34736 bikes were sold. Resultantly, phenomenal increase of 155.9 % in Earnings before interest and tax (EBIT) at Rs. 135.9 crores are reported for Q1 2014 when compared to Rs 53.1 crores in Q1 2013. Eicher Motors has been able to extract significant operating leverage in Q1 2014 and reports its best ever operating margin (EBIT) at 21.4%.
Elucidating on Royal Enfield, Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “Royal Enfield continues to be very strong Q1 2014. We had a very strong volume growth this quarter and we do continue maintain an extremely healthy order book. It has been just more than a year since Royal Enfield started commercial production at the new state-of-the-art facility in Oragadam. The new plant is shaping up really well and it has now started contributing significantly to our production volumes. In the first quarter of 2014, the Oragadam facility has produced more than 10,000 units per month and that number is poised to go up further as the year progresses”
He added, “At Eicher, we continue to focus on the long term growth strategy and we are working hard towards meeting our business objectives and goals. VECV has been extremely steady despite the stressful environment the industry is going through. Eicher introduced their new ‘Pro Series’ of trucks at the 12th Auto Expo at New Delhi. The new Pro Series range of trucks meets the needs of the emerging mid-premium market segment and also is a significant step for VECV towards their aim to improve transportation efficiency in India and the developing markets via relevant modernization. Royal Enfield continues to perform exceptionally well posting record sales and production numbers this quarter and working its way to become a leader in the global mid-sized motorcycling industry. Investments for the Oragadam facility and Royal Enfield business continue as planned for CY 2014. We are working closely with our international channel partners this year and we have scheduled many strategic rides and events in our international markets in the coming months”, said Mr. Lal.