ChargePoint and General Motors Corporati...
December 21, 2024
Net profit for the October–December quarter had grown by 34% year over year, as the automaker's margins strengthened due to increased volumes and a slowdown in the inflation of commodity costs.
Date: February 14, 2024
Gurugram- Eicher Motors Ltd., They revealed that their consolidated net profit for the October–December quarter had grown by 34% year over year, as the automaker's margins strengthened due to increased volumes and a slowdown in the inflation of commodity costs. A significant increase in the profit share from the joint venture VE Commercial Vehicle also contributed to the earnings.
The automaker with its headquarters in New Delhi reported a combined net profit of Rs 995.97 crore for the quarter, up from Rs 740.84 crore in the same time last year. Operational revenue increased by 12% annually to Rs 4,178.84 crore, mostly due to increased Royal Enfield volume and pricing.
Over the course of the three months, the business sold 2.29 lakh Royal Enfield motorcycles, an increase of 4% over the same period the previous year. During the quarter, the business unveiled the all-new Himalayan and the Shotgun 650, as well as updated the Meteor 350 cruiser with new features and colorways.
Mr. B Govindarajan, Royal Enfield Chief Executive Officer and Eicher Motor’s Whole-time Director, said that, At Royal Enfield, the quarter has been fantastic as we have maintained our solid growth momentum and achieved our highest-ever quarterly sales figures.
In terms of profitability, Eicher Motors reported a 27% year-over-year increase in profits before interest, taxes, and depreciation (EBITDA) to Rs 1,090.27 crore. According to our calculations, operating profit margin, or EBITDA margin, increased to 26.09% from 23.94% in the same time last year.
The strong operating performance is explained by the fact that operating expenses grew more slowly than revenue, which increased by double digits. The cost of the company's used raw materials and components drove up overall expenses for the quarter to Rs 3,248.54 crore, an 8% rise over the previous year.
Moderation in the inflation of raw material costs is reflected in the growth of operating profit. As a proportion of operating revenue, the cost of components and raw materials used decreased to 77.7% from 80.8% in the same period last year.
Concurrently, the joint venture's profit share from VE Commercial Vehicles increased by 78% year over year to Rs 113.85 crore. In order to produce and export engines for the Volvo Group, as well as to manufacture and distribute trucks and buses under the Eicher brand, as well as to handle the exclusive distribution of Volvo vehicles in India, Eicher Power Solutions, and Eicher Engineering Components, joined forces to become VE Commercial Vehicles.
Mr. Vinod Aggarwal, VE Commercial Vehicles Managing Director and Chief Executive Officer, said that With increases in market share across all business sectors, VECV had a great quarter. With 20,706 units sold, Q3 sales were the greatest to date.
In addition to continuing to deliver electric buses, VE Commercial Vehicles began delivering India's first electric 5.5 T truck during the quarter. Additionally, the business debuted its first compact electric commercial vehicle at the 2024 Bharat Mobility Global Expo. It is anticipated that the device would hit the market in 2025.
Eicher Motors recorded a combined net profit of Rs 2,930 crore for the first nine months of the financial year, an increase from Rs 2.008.36 crore. From Rs 10,637.86 crore to Rs 12,279.74 crore, operating revenue grew.
