Eicher Motors records total revenue from operations at Rs 818 crores

Eicher Motors Limited (EML) announced its audited consolidated financial results for the quarter ended  June 30, 2020.

For the quarter ended June 30, 2020, Eicher Motors’ total revenue from operations was recorded at Rs. 818 crores, down by 66% as compared to Rs. 2,382 crores in the corresponding quarter of FY 2019-20; EBITDA was Rs. 4 crores as compared to Rs. 614 crores in the same quarter of the previous financial year; Loss of Rs. 55 crores against profit of Rs. 452 crs during the same period last year. Royal Enfield sold 58,383 motorcycles in the quarter, a decline of 68% from 181,966 motorcycles sold over the same period in FY 2019-20.

Commenting on Eicher Motors’ performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd, said, “The previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. However, we believe that the long term potential for both Royal Enfield and VECV is very promising. Towards the end of the quarter we’ve witnessed encouraging consumer sentiment which was evident in our sales for the month of June. We believe that this trend will continue into this quarter as well. International business at Royal Enfield is doing extremely well, led by the modern 650 Twin motorcycles and the Himalayan. The Interceptor 650 has been the highest selling motorcycle in the middleweight segment in the UK for the last one year. At VECV, we have always remained focused on our long term plans and have rolled out initiatives to improve efficiencies, productivity and further upgrade processes. We are very happy to announce that VECV has signed a definitive agreement with Volvo Group India Pvt Ltd. for acquisition of its bus business under Volvo Buses India. This is a momentous occasion for us. We believe this integration will be instrumental in shaping the future of the Indian bus industry”

Speaking on Royal Enfield’s performance, Vinod K. Dasari, CEO, Royal Enfield said, “Through a challenging environment, we’ve remained focused on the opportunities for Royal Enfield.  We’ve worked on strengthening our relationship with our customers and have ensured full support to our network partners. From a consumer point of view, our effort has been to build seamless and hasslefree processes and focus on retail and service excellence. We have launched several initiatives that offer contactless purchase and service experience for the consumer, including the Service on Wheels initiative launched recently. From a business point of view the initial consumer sentiment over the last two months has been very encouraging. Demand from semi-urban and rural towns have picked up well, and our network of studio stores across the country have been able to cater to this demand. There is pent up demand and we are optimistic about stronger recovery once supply chain stabilizes.”

Royal Enfield’s manufacturing units resumed operations on May 06, 2020 after being suspended on March 23, 2020. Retail operations have also resumed through the unlock phases in a staggered manner. We now have 921 dealerships and 638 studio stores open and functional across the country

To enhance customer experience and ensure safety and convenience, Royal Enfield announced several initiatives to offer contactless purchase and service. Through digital and online conveniences and ‘At-your-doorstep’ services, the aim is to provide customers with a seamless and hassle-free discovery, purchase and ownership journey. Royal Enfield also launched Service on Wheels, a fleet of mobile, service-ready motorcycles, across the country for safe and hasslefree service experience at customers’ doorstep. 800 units of Service on Wheels motorcycles capable of undertaking upto 80% of all typical service and repair requirements have been deployed across dealerships.

Last quarter, Royal Enfield announced the launch of its first-ever exclusive Women’s Apparel and Riding Gear range. The collection has been purpose built to suit women’s riding comfort, inspired by the motorcycling way of life.

With the lockdown easing up in parts of the country, the second edition of the Royal Enfield Slide School was kicked off at the Big Rock Dirt Park, Bengaluru. An engaging and accessible platform to encourage and grow the interest for flat-tracking in India, the second edition saw enthusiastic participation.

For the quarter ended 30 June 2020, VECV’s revenue from operations was Rs. 641 crores, down by 72% from Rs. 2,255 crores in the same period last year; EBITDA loss was Rs. 72 crores as against profit of   Rs. 137 crs last year in the corresponding quarter. Loss of Rs. 120 crs against profit of Rs. 38 crs last year. VECV registered an 84% decline in sales with 2,129 units as against 13,331 units in the Q1 of last year. The company however, outperformed the industry which saw a 91% drop in volumes. The company’s manufacturing facilities have resumed operations with the gradual easing of restrictions