Eicher Motors Limited

Eicher Motors Limited announces financial results for the quarter and year ended March 31, 2021

●      For the quarter ended March 31, 2021, Eicher Motors Limited recorded, total revenue from operations at an all-time high of Rs. 2,940 crores, EBITDA at Rs. 634 crores and Profit after tax at Rs. 526 crores

●      For the year ended March 31, 2021, Eicher Motors Limited recorded total revenue from operations at Rs. 8,720  crores, EBITDA at Rs. 1,781 crores and Profit After Tax at Rs. 1,347 crores

 

New Delhi, May 27, 2021: Eicher Motors Limited (EML) today announced its audited consolidated financial results for the quarter and year ended March 31, 2021.

 

For the quarter ended March 31, 2021, Eicher Motors’ total revenue from operations was at an all-time high at Rs. 2,940 crores, up 33% as compared to Rs. 2,208 crores in the corresponding quarter of FY 2019-20. EBITDA was Rs. 634 crores, up 47% as compared to Rs. 432 crores in the same quarter of the previous financial year. Profit After Tax was Rs. 526 crores up 73% as compared to Rs. 304 crores during the same period last year. Royal Enfield sold 203,343 motorcycles in the quarter, an increase of 25% from 163,083 motorcycles sold over the same period in FY 2019-20.

For the Financial Year ended March 31, 2021, Eicher Motors’ total revenue from operations was down by 5% to Rs. 8,720 crores, compared to Rs. 9,154 crores recorded for FY 2019-20. EBITDA was Rs. 1,781 crores, down by 18% compared to Rs. 2,180 crores and Profit After Tax was recorded at   Rs. 1,347 crores, down 26% as compared to Rs. 1,827 crores for the same period last year. Royal Enfield sold 609,403 motorcycles during the year, down 13% from 697,582 motorcycles sold in FY 2019-20.

Commenting on Eicher Motors’ performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd., said, “It has been a challenging year for the industry with the COVID-19 pandemic leading to disruption in production, supply chain and retail operations. We remained agile and responded swiftly by reworking our immediate priorities and providing relief to communities as well as ensuring the safety and well-being of our employees, partners and customers. During the year, there were challenges also on account of factors such as supply chain constraints and commodity price increase. However, demand continues to be good. Royal Enfield witnessed very good pick up in the second half of the year, and registered a strong performance in Q4. We have seen encouraging demand coming from rural as well as urban segments. The launch of the Meteor has been well received by consumers, and has witnessed excellent response. We have also been able to significantly increase our retail market presence in India and globally through this year. The commercial vehicle industry also showed equal resilience and saw good recovery in the latter half of the year. VECV gained market share across segments. In the heavy duty segment, VECV volume grew by 6% in FY21 compared to last year against a decline of 21% in industry volume. Overall, both at Royal Enfield and at VECV, we have managed to tide over a tough year, and despite imminent challenges that persist, we remain steadfast on our strategic long term goals.”

 

Speaking about Royal Enfield’s performance,  Vinod  K.  Dasari,  CEO,  Royal  Enfield said, “Despite highly testing external factors in the automotive industry last year, we continued our growth momentum at Royal Enfield. We remained focused on deepening our presence in India and international markets and added significantly to our retail network. We added 535 dealerships and studio format stores during the year taking our retail presence to 2,056 retail touchpoints across more than 1,750 cities. We have been able to expand and strengthen our product portfolio with the launch of the all new easy cruiser, Meteor 350 and upgrades to the Himalayan, the Classic, and the 650 Twin motorcycles. We stayed focused on bringing our consumers closer to the brand with a host of unique, industry first, digitally powered offerings. We launched the Royal Enfield App to extend the brand experience beyond physical touch-points, rolled out the MiY initiative to enhance motorcycle discovery, personalization and purchase experience, and introduced a host of digital campaigns to engage with our community while they stayed at home. We combined our digital focus with a sharp approach towards elevating the service experience of our customers with initiatives like Service on Wheels, pick-up and drop facility, and mobile service trucks to offer convenience and widen accessibility. We continue to ride ahead and are committed to re-energize our growth plans with a firm vision on our long term goals.”

During the last quarter of this financial year, Royal Enfield continued to strengthen its product line up and launched the new Himalayan in three new distinctive, terrain-inspired colorways, combined with a host of functional upgrades including the Tripper navigation pod. The new Himalayan was introduced across India, Europe, and the UK. Royal Enfield also launched new colourways for both the Interceptor 650 and the Continental GT 650. Both the new Himalayan and the 650 Twin motorcycles were launched with a host of exciting MiY options.

 

In January this year, Royal Enfield expanded its presence in international markets by announcing its entry into Japan with its first standalone, flagship store in Tokyo. This is a significant development for Royal Enfield, considering Japan is among the key motorcycling markets in the world.

 

In line with the brand’s long standing commitment to providing motorcycling enthusiasts a platform to express their love and passion for the machines, Royal Enfield rolled out the ‘Build Your Own Legend' campaign during the last quarter of the year. The campaign saw motorcycling enthusiasts from across the country, share their renditions of evocative designs and concepts for a custom motorcycle based on the Meteor 350.

 

During the year, Royal Enfield’s retail footprint in India increased from 1,521 stores across 1,200 cities to 2,056 stores across 1,750 cities. With the launch of more than 100 dealerships and more than 430 studio stores in India during FY 2020-21, Royal Enfield has further grown its network across urban, as well as rural markets. Internationally, the company now has more than 130 exclusive stores, and a retail footprint of over 760 stores in more than 60 countries. Last year saw Royal Enfield foray into new markets such as Japan, Cambodia, Costa Rica, and Dominican Republic. The company also launched its first CKD unit (completely knocked down), in Buenos Aires, Argentina during the year.

The year also saw Royal Enfield launch its all-new, grounds up motorcycle in the cruiser segment, the Royal Enfield Meteor 350. The motorcycle has received excellent response from experts and consumers alike, and has won numerous awards and accolades globally- including the prestigious Indian Motorcycle of the Year Award (2021) and the Best Modern Classic over 250cc award at the Thailand Bike of the Year Awards 2021 amongst others. Since its launch in India, the Meteor 350 has been introduced across Europe, Thailand, Indonesia, Australia, Japan, North America and Europe.

Last year saw Royal Enfield introduced a slew of digital initiatives as well, including the RE App and MiY initiative. RE App offers a slew of conveniences like online motorcycle configuration and purchase, online payment and service booking. The Make it Yours (MiY) initiative which allows customers to select, customize and book their motorcycles and apparel directly through the App saw huge success with consumers.

On the apparel front, Royal Enfield collaborated with leading lifestyle brand Levi’s for a capsule collection of jeans and jackets. A collaboration with protective gear experts, Knox, saw the brands co-create a range of high protection, accessible riding gear, and a CE-certified external knee-guard called Conqueror. The company also launched its first ever range of women’s only gear and apparel during the year.

For the quarter ended 31 March, 2021, VECV’s revenue from operations was Rs. 3,602 crores, up 71.4% from Rs. 2,101 crores during the corresponding quarter last year. EBITDA was Rs. 320 crores, significantly higher as compared to Rs. 37 crores in the same period last year. Through various measures, addressing revenue and cost, VECV was able to grow the EBITDA margin to 8.9% during the quarter, from 1.8% during the corresponding period last year. Profit After Tax for the quarter was Rs. 127 crores as against a loss of Rs. 26 crores for the same quarter last year. For the quarter, VECV recorded strong growth of 56% with volumes of 18,167 units against 11,629 units during the same period last year.

 

Speaking on VECV’s performance Vinod Aggarwal, MD and CEO, VECV, said “The fourth quarter started on a positive note. With normalizing of economic activities, we witnessed a significant recovery in the truck segment. Favorable measures announced in the Union Budget 2021-22 with respect to voluntary vehicle scrappage, Product Linked Incentive (PLI) scheme and many measures to boost the infrastructure segment, have also aided recovery in this quarter.

 

Our focus on customer satisfaction and ‘Uptime’ through Eicher’s 100% connected BS VI range with Volvo Group Technology has been recognized by the market as well as corroborated by our performance, both in volume and financial performance for the year. As a result, the quarter recorded strong growth of 49% in 3.5T and above industry. Continuing our track record of outperforming the industry growth, VECV posted a strong volume growth of 56% for the quarter. For the full year as well, as against an industry volume drop of 30%, our drop was 15%, resulting in an increase in our market shares across all segments. Through various measures, addressing revenue and cost, VECV was able to grow the EBITDA margin from 4.9% in FY 2019-20 to 6.8% in FY 2020-21 despite lower year-on-year volumes.

 

The second wave of the pandemic is impacting the automotive supply chain. We are in constant touch with customers, dealers, suppliers and partners and we are adapting our operations accordingly. At VECV, the safety of our employees and workers is of utmost importance and we are ensuring that the working environment for them is safe by adhering to all government regulations. We are encouraging eligible employees to get vaccinated. We are particularly proud of our customers who are playing a crucial role and supporting the nation by facilitating economic activities and moving essential goods, medicines and vaccines.”