Eicher Motors Q2 PAT up 4.3% at Rs 573 crore, Auto Information, Automobilnews
New Delhi: Homegrown bikes and business automobiles maker Eicher Motor reported 4.Three per cent development in its consolidated revenue after tax (PAT) at Rs 573 crore for the quarter ended September 20 2019.The corporate has posted Rs 549 consolidated PAT for the July-September interval a 12 months in the past, Eicher Motors mentioned in a launch.
Firm’s complete income from operations, nonetheless, dipped by 9 per cent at Rs. 2,192 crore in Q2 FY’20 as in comparison with Rs. 2,408 crores in the identical quarter a 12 months in the past.
Throughout the quarter underneath evaluation EBITDA was Rs 541 crores, down by 26 per cent in comparison with Rs. 729 crores in Q2 of FY 2018-19.
Commenting on Eicher Motors’ efficiency, Siddhartha Lal, Managing Director of Eicher Motors Ltd, mentioned, “By the previous few quarters, now we have continued to take a position for the long run by pursuing higher innovation, enhancing efficiencies, and making investments in several areas. The 650 Twin bikes proceed to usher in the accolades and within the month of September, the Interceptor 650 obtained the ‘Greatest Retro Motorbike 2019’ award from MCN, a number one motorbike publication within the UK.”Lal additional mentioned that the Industrial Automobile business continues to be difficult resulting from weak business sentiments. “Nevertheless, VECV gained market share in Q2 2019 regardless of decline in complete business quantity,” Lal added.
Throughout July-September interval, Royal Enfield offered 163,390 items, a decline of 22 per cent from 209,963 bikes unit over the identical interval within the final monetary 12 months.
Talking additional on Royal Enfield’s efficiency, Vinod Dasari, CEO, Royal Enfield mentioned, “We’ve persistently labored to strengthen our distribution community and product capabilities. In August, we launched 250 Studio Shops throughout India to usher in extra accessible shopper touchpoints in tier 2 and three cities.”
“By the tip of October, we now have greater than 500 Studio Shops, taking our retail footprint to over 1,400 touchpoints in India. The response to the Studio Shops has been nice, and we’re already working to widen our presence over the forthcoming quarter,” he added.
He additional highlighted that the corporate has doubled the gross sales volumes of two-wheelers this quarter as in comparison with the earlier 12 months.
VECV development stays mutedWithin the business Automobiles section, VE Industrial Automobiles (VECV) – Eicher’s joint-venture with AB Volvo – continued to be affected by the demand slowdown.
For the quarter ended September 2019, VECV’s income from operations was Rs. 2,004 crores, down 32 per cent from Rs 2,966 crores in the identical interval final 12 months; EBITDA declined by 61% to Rs. 105 crores from Rs. 267 crores in the identical interval final 12 months.
PAT declined by 89 per cent to Rs 15 crores from Rs 142 crores recorded in the course of the corresponding interval FY 2018-19. VECV offered 11,370 vehicles and buses within the quarter, registering a decline of 39.2 p.c over the identical interval final 12 months.
Talking on VECV’s efficiency Vinod Aggarwal, CEO VECV mentioned “CV business continues to undergo a difficult part, with excessive slowdown in demand. With the onset of competition season, the shopper sentiments have marginally improved and that has mirrored in higher efficiency within the two wheelers and passenger automobile markets. Nevertheless, it nonetheless has not translated into enterprise restoration for the business automobile business largely resulting from idle capability of vehicles with the transporters.”
“Going ahead, we’re optimistic that business is prone to carry out higher within the steadiness a part of the 12 months resulting from thrust on infrastructure investments and pre-buying of BS IV automobiles and certain decide up in enterprise exercise with improved sentiments,” he added.
The corporate is on observe for the BS-VI business automobile roll out from February 2020.