Royal Enfield revenue increases to Rs 2,548 crores – 650 Twins booking open by Dec 2018
Royal Enfield is a global leader in 350-500 cc motorcycle.
For the quarter ended June 30, 2018, Eicher Motors Limited (parent company of Royal Enfield) reports its highest total revenue from operations at Rs 2,548 crores, highest ever EBITDA at Rs 810 crores and Net Profit After Tax at Rs 576 crores.
Through the quarter ended June 2018, Royal Enfield reports its best ever performance. Revenue from ops is up 27 percent to Rs 2,548 crores (net of excise duty) over the same quarter in 2017. Profit After Tax is up 25 percent to Rs 576 crores, up from 460 crores in the same period last year. EBITDA percent grew 31.8 percent in the quarter from 31 percent reported in Q1 2018. Royal Enfield sold 225,286 motorcycles in Q1 FY19 at 23 percent growth, up from 183,731 motorcycles sold in Q1 FY18.
Siddhartha Lal, Managing Director and CEO Eicher Motors Ltd said, “The 650 Twin motorcycles are ready for the first global media ride planned for the last week of September in California. We will begin bookings in a phased manner for these motorcycles starting from the third quarter of this financial year, across geographies.
To better cater to demand, we have commenced work on Phase II of our Vallam Vadagal manufacturing facility and should begin production there by mid of FY2020. Towards enhancing our design, engineering and product development capabilities, our Chennai Technology Centre is on track and we plan to complete the installation of all testing and validation equipment by October 2018.”
At the end of July 2018, Royal Enfield scheduled online sales for its newly launched Classic 500 Pegasus bike, and sold the allotted 250 units for India in 178 seconds of bookings commencing. Majority of Royal Enfield sold are the 350cc, which accounts for about 85% of the company’s total sales.
In the CV segment, parent Eicher’s JV with Volvo VE Commercial Vehicles (VECV) performed well. VECV’s revenue from operations are up 45 percent to Rs 2609 crores from 1803 crores in Q1 FY18; PAT rose by 78 percent to Rs 118 crores, up from 67 crores.
VECV sold 16,327 trucks and buses in Q1 FY19, reporting 41 percent growth over Q1 FY18. Continued CV industry growth is expected on the back of infra development, manufacturing sector growth, and strong replacement demand. Through the last quarter, VECV launched Pro 6049 and Pro 6041, and added more variants powered by CNG in the light and medium duty segments.