Royal Enfield's Q2 revenue zooms to a decade's high of Rs2,548 crore
10 August 2018
Royal Enfield, a global leader in 350-500 cc motorcycles, has reported a 25 per cent increase in net profit for the April-June 2018 quarter at Rs 576.2 crore - its highest quarterly profit in at least a decade.
Eicher Motors Limited, the makers of iconic Royal Enfield motrocycles also reported the highest total revenue from operations for Royal Enfield at Rs2,548 crore and highest ever EBITDA at Rs810 crore during the quarter.
EBITDA grew 31.8 per cent in the quarter from 31 per cent reported in Q1 2018.
Royal Enfield sold 225,286 motorcycles in Q1 FY19, up from 183,731 motorcycles sold in Q1 FY18, recording a 23 per cent growth.
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 per cent 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 per cent to Rs2,609 crore from Rs1,803 crore in Q1 FY18; PAT rose 78 per cent to Rs118 crore, up from Rs67 crore.
VECV sold 16,327 trucks and buses in Q1 FY19, reporting 41 per cent 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.