Eicher Motors Limited (EML), the parent company of Royal Enfield has revealed their financial results for FY17-18 which puts forth an outstanding year on all counts. The company has launched new products and unveiled their twin cylinder Interceptor 650 and the Continental GT 650 motorcycles.
Royal Enfield is also set to pay greater importance to its two wheeler business with investment of INR 800 crores to enhance production capacities, dealerships and format stores both in India and in global markets.
Eicher Motors Limited has announced highest ever total revenues from operation in FY17-18 at INR 8,965 crores and the highest ever EBITDA at INR 2,808 crores. Net profits after tax were also the company’s highest ever at INR 1,960 crores while total comprehensive income increased by 18.3% over FY16-17, even as Royal Enfield reported FY17-18 growth to the extent of 23.1% and total sales of 8,20,121 units.
Taking Q4 FY17-18 into account sales stood at 2,26,907 units as against 1,78,345 units sold in Q4 FY 16-17 resulting in growth of 27.2% making this the best ever quarterly sales to date.
Revenue from operations of Royal Enfield in Q4 2017-18 stood at INR 2,528 crores, up 34% as compared to the same in Q4 FY 2016-17. Exports during the past fiscal increased by 26% to 18,891 units as compared to 15,025 units exported in the same period of the previous year. This increase could be attributed to the fact that the company opened stores in new markets.
Royal Enfield will be paying more importance to increased capacities to meet this increased demand. Production will be extended to 9.5 lakh units in the current fiscal while 120 new company dealerships will also be added taking total dealerships to 950. To enhance exports, 30 format stores will be opened and many new products are poised for launch.