Eicher Motors Ltd today reported its highest-ever revenues and profits for the fourth quarter of 2023-24 and the full financial year 2024. The company’s net profit rose 18 percent in the quarter, while it grew at a much higher rate of 37 percent during the financial year.
The quarterly performance was driven by Royal Enfield as the lower share of profit from the joint venture Volvo Eicher Commercial Vehicles (VECV) was lower during the period. However, the profit share was higher for the full year.
The automaker’s consolidated net profit after tax for the quarter came in at Rs 1,070 crore, against Rs 906 crore in the year-ago period. Revenue from operations rose 12 percent on year to Rs 4,256 crore.
The revenue and profit grew on robust volume in Royal Enfield, which registered a 6 percent on-year growth in its sales to 227,925 two-wheelers during the quarter.
EBITDA, or operating profit, rose 21 percent to Rs 1,129 crores while operating profit margin improved to 26.5 percent from 24.5 percent in the year-ago period.
Net profit growth rate was lower than the operating profit growth as the share of profit from VECV declined to Rs 132 crore from Rs 173.38 crore in the year-ago period.
FY24 results
For the full financial year, Eicher Motors clocked Rs 4,001 crore as consolidated profit after tax, compared with Rs 2,914 crore in the financial year 2023. Revenue from operations rose 14.5 percent to Rs 16,536 crore.
Royal Enfield volume grew 9 percent on year to 9.13 lakh units. During the year, the two-wheeler maker launched the all-new Bullet 350, the all-new Himalayan, and the Shotgun 650.
EBITDA was 26 percent higher at Rs 4,327 crore and the EBITDA margin expanded to 26.2 percent from 23.8 percent in financial year 2023.
Unlike the fourth quarter, net profit growth is higher than the EBITDA growth with a higher share of profit from the VECV joint venture. Higher other income during the year also supported the net profit growth.
The share of profit from the VECV joint venture grew to Rs 448 crore from Rs 315 crore in the financial year 2023. VECV volume rose 7.5 percent to 85,560 vehicles during the period.
“At VECV, we have recorded the highest ever sales of Eicher Trucks and Buses, Volvo Trucks, VE Powertrain, Components and Power solutions,” Eicher Motors’ MD and CEO Siddhartha Lal said.
