Eicher Q4 net up 49 pc to Rs.906 cr; lines up Rs.1,000 cr capex in FY24

New Delhi: Eicher Motors on Thursday said its consolidated net profit increased by 49 per cent to Rs 906 crore for the fourth quarter ended March 31, 2023, on the back of robust sales across domestic and global markets.

The company, which had reported a net profit of Rs 610 crore a year ago, said it has earmarked Rs 1,000 crore capex this fiscal for its motorcycle business.

Total revenue from operations rose to Rs 3,804 crore for the fourth quarter as compared with Rs 3,193 crore in the year-ago period, Eicher Motors said in a regulatory filing.

During the fourth quarter, Royal Enfield, a part of Eicher Motors, recorded sales of 2,14,685 motorcycles, up 18 per cent, from 1,82,125 motorcycles sold during the same period in 2021-22.

For the year ended March 31, 2023, the company posted a consolidated net profit of Rs 2,914 crore as compared with Rs 1,677 crore in FY22.

Total revenue from operations for FY23 increased to Rs 14,442 crore as against Rs 10,298 crore in the 2021-22 fiscal.

Last fiscal, Royal Enfield registered the highest-ever motorcycle sales at 8,34,895 units, up 38 per cent from 6,02,268 units in FY22.

The company said it also crossed the 1 lakh export shipments milestone for the first time last fiscal.

Eicher said its board has approved a cash outlay of Rs 1,000 crore for 2023-24.

The capital would be utilised to set up an electric vehicle manufacturing facility and product development besides consolidating new product development under the internal combustion engine portfolio.

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has lined up Rs 750 crore capex for the current fiscal.

"We saw overall stabilisation of supply chain, markets, and also the organization, and made significant progress on all important initiatives resulting in our best ever business and financial performance, both at Royal Enfield and VE Commercial Vehicles," Eicher Motors Managing Director Siddhartha Lal stated.

Going ahead, Eicher Motors is set for the next phase of growth, he added.

On the electric vehicle business, he noted that the company is focused on creating uniquely different electric bikes.

Lal said the company is building a capable team and forging supply chain tie-ups in the segment.

Royal Enfield has earmarked space at its existing plant near Chennai to roll out EVs.

Besides, it also has a land parcel near the plant for EV production.

"We are not giving out a timeline for the first EV product launch. What we can say is that we are working tirelessly and in a very focused manner," Lal said.

He said the company has crossed Rs 33,000 crore revenue mark in both Royal Enfield and VECV businesses, setting a very strong base for future growth.

Royal Enfield CEO B Govindarajan said the company would be launching a slew of new models over the next 18-24 months.

For the fourth quarter ended March 31, 2023, VECV recorded its highest-ever quarterly revenue from operations at Rs 6,200 crore, up 44 per cent from Rs 4,307 crore in the corresponding period of 2021-22 fiscal.

Profit after tax stood at Rs 319 crore as compared with Rs 99 crore in the same quarter of the previous financial year.

During the quarter, VECV recorded the highest-ever quarterly sales of 26,376 units, up 31 per cent from 20,093 units sold during the same period last year.

The company said its board has recommended a final dividend aggregating to Rs 1,011.88 crores at Rs 37 per share for the financial year ended March 31, 2023.

Shares of the company ended 0.25 per cent down at Rs 3,407.05 apiece on the BSE