Indian auto major Eicher Motors has reported Rs 818 crore as revenue from operations for the first quarter of the financial year 2020-21, down by 66 percent from Rs 2,382 crore recorded in the corresponding quarter of FY 2019-20.
The company’s EBITDA stood at Rs 4 crore as compared to Rs 614 crore for the same period.
Loss of Rs 55 crore witnessed in the first quarter of the current financial year against profit of Rs 452 crore reported during the same period a year ago.
Its subsidiary Royal Enfield sold 58,383 motorcycles in the quarter, tumbling 68 percent from 181,966 units sold in the same period in the previous financial year 2019-20.
According to 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.”
In the month of June, we’ve witnessed encouraging consumer sentiment, Lal said.
The company believe’s 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, he added.
In the United Kingdom for the past one year, the Interceptor 650 has been the highest selling motorcycle in the middleweight segment.
He also said that VECV has signed a definitive agreement with Volvo Group India for acquisition of its bus business under Volvo Buses India.
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.”
Royal Enfield’s production plants 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.
The company has 921 dealerships and 638 studio stores open and functional across the country.
Performance of VECE
For the first quarter in the current fiscal, VECV’s revenue from operations stood at Rs 641 crore, a decline of 72 percent from Rs 2,255 crore in the same period a year ago.
Loss of Rs 120 crore reported against profit of Rs 38 crore in the corresponding quarter in the previous financial year.
Speaking on VECV’s performance Vinod Aggarwal, MD and CEO VECV said “The first quarter has been challenging for the industry with almost complete wash out in the first two months of the quarter on account of the pandemic. We expect the situation to gradually improve starting from the festive months led by infrastructure investments and strong pent up replacement demand.”
He also said the integration of Volvo Bus India business into VECV will cover the manufacturing, assembly, distribution and sales of the Volvo Buses in India, and other rights forming part of the business.
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