Eicher Motors Q1 FY25 Results Show 20% Profit Increase

Eicher Motors Limited (EML) is one of the leading Indian multinational automotive companies that manufacture motorcycles and commercial vehicles, headquartered in New Delhi. Eicher Motors is the parent company of Royal Enfield, a manufacturer of middleweight motorcycles in India. Royal Enfield is the top-selling brand under Eicher Motors, significantly contributing to generating higher revenue. Eicher Motors Limited (EML) is the listed parent company of Royal Enfield, the global leader in middleweight motorcycles. Royal Enfield, the world’s oldest motorcycle brand in continuous production, has been producing its distinctive motorcycles since 1901. Focused on bringing back simple yet engaging and accessible motorcycling, Royal Enfield operates in India and over 60 countries worldwide. The company has modern development facilities in Leicestershire, UK, and Chennai, India. Royal Enfield manufactures its motorcycles in Chennai, Tamil Nadu, from India for global distribution. The brand has transformed into an experiential brand, capturing significant passion among motorcyclists worldwide with its motorcycles that blend modern-day features with the brand’s rich heritage. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo, Volvo Eicher Commercial Vehicles Limited (VECV), which has spearheaded the modernization of commercial vehicles in India and other developing countries. VECV offers a comprehensive range of trucks and buses ranging from 4.9 to 55 tons. Its integrated manufacturing plant in Pithampur, Madhya Pradesh, serves as the global hub for medium-duty five- and eight-liter engines for the Volvo Group.

Eichor Motros Q1 FY25 Result:

Eicher Motors Ltd. recorded the highest-ever total revenue from operations at Rs 4,393 crore, representing a 10% increase. EBITDA stood at Rs 1,165 crore, surpassing by 14%, and profit after tax (PAT) reached Rs 1,101 crore, marking 20% growth compared to the previous year. This growth is because of favorable commodity prices, inventory benefits, and positive volume growth in the Royal Enfield (RE) segment.

Eicher Motors’ total revenue from operations amounts to Rs. 4,393 crore, reflecting a 10.2% increase compared to Rs. 3,986 crore in Q1 FY24. Analysts are expecting the company to report consolidated results with revenue growth of Rs 991 crore and total revenue of Rs 4,207 crore, which is surprisingly positive. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 14.1% to Rs 1,165.5 crore in Q1 FY25 from Rs 1,021 crore in Q1 FY24. Its margin stood at 26.5% in the June quarter, compared to 25.6% in the same period last year.

Royal Enfield, a key division of Eicher Motors, sold 2,27,736 motorcycles in Q1 FY 2024–25, a little up from the 225,368 motorcycles sold during the same period in FY 2023–24.  Volvo Eicher Commercial Vehicles Limited (VECV), another division of Eicher Motors, reported revenue from operations of Rs. 5,070 crore, an increase of 1.8% compared to the previous year’s revenue of Rs. 4,980 crore. EBITDA for the first quarter was Rs 385 crore, slightly lower than Rs 387 crore in the previous year. Profit after tax reached Rs. 319 crore, up from Rs. 181 crore in the previous year. VECV sold 19,702 vehicles in FY25, compared to 19,571 vehicles in FY24.

Stock price of Eichor Motors: 

Eichor Motors stock price is currently trading at Rs. 4,790.05 per share, showing an increase of almost 5% in intraday trading. The company’s outstanding Q1 FY25 results, which were made public yesterday after the market closed, account for this spike.

Conclusion: Eichor Motors increased revenue by selling a higher number of Royal Enfield motorcycles in the first quarter of FY25. This boost in revenue can be attributed to the strong sales of steel bikes last year, which instilled confidence for this year. This positive trend is expected to continue into the next quarter.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.