The share of profit from VE Commercial Vehicle joint venture rose to Rs 113.75 crore from Rs 101.62 crore in the year-ago period.
13 Nov 2024 | 4727 Views | By Kiran Murali
Eicher Motors Ltd on Wednesday posted 8% growth in its net profit for the second quarter on a year-on-year basis despite weakness in Royal Enfield sales volumes.
The company clocked a net profit of Rs 1,100.3 crore as consolidated net profit for the quarter, up from Rs 1,016.3 crore ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Eicher Motors Ltd on Wednesday posted 8% growth in its net profit for the second quarter on a year-on-year basis despite weakness in Royal Enfield sales volumes.
The company clocked a net profit of Rs 1,100.3 crore as consolidated net profit for the quarter, up from Rs 1,016.3 crore in the year-ago period.
Eicher Motors sells motorcycles under the Royal Enfield brand. It also sells trucks and buses through VE Commercial Vehicles, the joint venture between Eicher Motors and Volvo Group.
Operating profit, or earnings before interest, taxes, depreciation, and amortization (EBITDA), however, remained almost flat at Rs 1,087.7 crore, while operating profit margin contracted to 25.5% from 26.4%, as per our calculations.
Revenue from operations during the quarter rose 3.6% on year to Rs 4,263.07 crore. The profit also got a boost from a 30% growth in other income to Rs 353.8 crore.
Total Royal Enfield volumes declined 1.8% on year to 2.25 lakh units. The improvement in export volumes could not fully offset the impact of weakness in domestic volumes.
Total expenses grew 5.6% in the quarter to Rs 3,368.5 crore. Cost of raw materials and components consumed as a percentage of revenue from operations expanded to 55.8% from 55.5% in the year-ago quarter.
VE Commercial Vehicles' revenue from operations improved by 8% to Rs 5,538 crore as truck and bus volume increased to 20,774 units from 19,551 units. The joint venture's profit after tax grew to Rs 209 crore from Rs 187 crore.
The share of profit from the VE Commercial Vehicle joint venture also rose to Rs 113.75 crore from Rs 101.62 crore in the year-ago period.
"On the commercial vehicle front, VE Commercial Vehicles delivered its best Q2 ever, with strengthened market shares in truck segments. This is commendable against the backdrop of lower industry volumes as compared to Q2 of last year," MD Siddhartha Lal said.