Introduction:
Eicher Motors Limited has pronounced a strong financial performance for the fourth region (Q4) of the financial year 2024 (FY24). The agency’s Profit After Tax (PAT) surged by way of 18.20% 12 months-on-year (YoY) to reach ₹1,070.Forty five crore. This giant growth is attributed to the a hit release of latest models and sturdy income in both its bike and industrial vehicle segments.
Quarterly and Annual Financial Highlights
In Q4FY24, Eicher Motors saw its consolidated revenue from operations rise by 11.87% YoY to ₹4,256.04 crore. Sequentially, PAT improved by 7.48%, while revenue saw a 1.85% increase. The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also saw a notable 20.88% YoY increase, reaching ₹1,129 crore.
For the full fiscal year 2024, Eicher Motors recorded a 14.49% YoY increase in revenue, totaling ₹16,535.78 crore. PAT soared by 37.31% to ₹4,001.01 crore, with EBITDA growing by 25.65% to ₹4,327 crore.
Royal Enfield Breaks Records
Royal Enfield, Eicher Motors’ flagship motorcycle brand, achieved its highest-ever sales performance during FY24. The brand’s growth trajectory continued to accelerate, driven by the successful launch of new models including the Bullet 350, the Himalayan on the Sherpa 450 platform, and the Shotgun 650. The Himalayan was particularly well-received, winning the Indian Motorcycle of the Year 2024 award.
Eicher Motors’ Strong Performance: PAT Soars 18% and Royal Enfield Hits New Sales Highs:
B. Govindarajan, CEO of Royal Enfield, highlighted the significance of this milestone: “2023-24 has been a hugely significant and high-adrenaline year for us. We have surpassed pre-COVID levels of growth and made significant strides in expanding our international presence. Notable achievements include the establishment of our fifth CKD assembly unit in Nepal and our market debut in Turkey.
Additionally, our new wholly-owned subsidiary in the Netherlands aims to cater to the evolving EU market.
Advancements in Electric Mobility
Eicher Motors has also made substantial progress in the electric vehicle (EV) sector. The company introduced its first electric vehicle concept, the Electric Himalayan Testbed, at EICMA 2023. Royal Enfield’s move into electric mobility is seen as a strategic step towards sustainable transportation, complementing its traditional motorcycle lineup.
On the commercial vehicle front, Eicher Motors’ subsidiary VE Commercial Vehicles (VECV) had a standout year. Vinod Aggarwal, MD and CEO of VECV, noted, “FY24 was a strong year for all our businesses. Our modern and efficient products, supported by our Uptime Promise, have been well received.
We have made significant strides towards sustainable transport, including the delivery of the Eicher Pro 2055 EV, India’s first 5.5-tonne distribution truck.”
Conclusion:
Looking ahead, Eicher Motors aims to continue its momentum in both traditional and emerging markets. The company is poised to maintain its growth trajectory with ongoing innovation and expansion in the global arena.
Royal Enfield’s new models and strategic market entries are expected to drive further growth, while VECV’s advancements in EV technology underscore Eicher Motors’ commitment to sustainability and modern transportation solutions.
As Eicher Motors wraps up a remarkable fiscal year, the company’s strong performance and strategic initiatives position it well for continued success in the coming years.
FAQ:
1. What were Eicher Motors’ financial results for Q4FY24?
In Q4FY24, Eicher Motors reported a Profit After Tax (PAT) of ₹1,070.45 crore, marking an 18.20% year-on-year (YoY) increase. Consolidated revenue from operations was ₹4,256.04 crore, up 11.87% YoY. Sequentially, PAT rose by 7.48% and revenue increased by 1.85%.
2. How did Eicher Motors perform in FY24 overall?
For the fiscal year 2024 (FY24), Eicher Motors achieved a 14.49% YoY increase in revenue, totaling ₹16,535.78 crore. PAT grew by 37.31% to ₹4,001.01 crore, and EBITDA was up by 25.65% at ₹4,327 crore.
3. What new products did Royal Enfield launch in FY24?
Royal Enfield introduced three major models in FY24:
- Bullet 350
- Himalayan (on the new Sherpa 450 platform)
- Shotgun 650
Additionally, the Himalayan won the Indian Motorcycle of the Year 2024 award.
4. What were the key achievements for Royal Enfield in FY24?
Royal Enfield had a record-breaking year with significant milestones:
- Surpassed pre-COVID sales levels.
- Expanded international presence by setting up its fifth CKD assembly unit in Nepal.
- Entered the Turkish market and established a wholly-owned subsidiary in the Netherlands.
5. What is Eicher Motors’ strategy regarding electric vehicles (EVs)?
Eicher Motors is focusing on expanding its electric vehicle offerings. In FY24, the company introduced its first electric vehicle concept, the Electric Himalayan Testbed, at EICMA 2023. VE Commercial Vehicles (VECV), a subsidiary, delivered the Eicher Pro 2055 EV, India’s first 5.5-tonne distribution truck.
6. How did VE Commercial Vehicles (VECV) perform in FY24?
VECV had a strong performance in FY24, benefiting from modern, connected, and efficient products. The company gained market share by offering solutions that modernize logistics and introduced several electric buses and trucks, including the Eicher Pro 2055 EV.
7. What are Eicher Motors’ future plans?
Eicher Motors aims to maintain its growth trajectory by focusing on:
- Continuing innovation and launching new products across both traditional and electric vehicle segments.
- Expanding its international market presence.
- Advancing sustainability through its electric vehicle initiatives.
8. How does Eicher Motors plan to support its electric vehicle strategy?
Eicher Motors plans to roll out a comprehensive range of electric vehicles, including small commercial vehicles and electric buses. The company has already showcased its electric vehicle concepts and commenced pilot programs for its electric truck range.
9. What is the significance of Royal Enfield’s expansion into new markets?
Royal Enfield’s expansion into new markets like Turkey and its new subsidiary in the Netherlands reflects its ambition to tap into emerging markets with potential for leisure motorcycling. This strategic move helps diversify its revenue streams and capture new growth opportunities globally.
10. Who is leading Eicher Motors and its subsidiaries?
- Siddhartha Lal is the Managing Director & CEO of Eicher Motors.
- B. Govindarajan is the CEO of Royal Enfield.
- Vinod Aggarwal is the MD and CEO of VE Commercial Vehicles (VECV).
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