Eicher Motors announced on Thursday that its consolidated net profit after tax increased by 48 percent to Rs 905.6 crore for the fourth quarter that ended March 31, 2023. The profit was significantly more than the Rs 770 crore projected by Marketbuddy. In the January-March quarter of the previous fiscal, the business posted a net profit after tax of Rs 610 crore.
Total income from operations increased to Rs 3,804 crore in the fourth quarter, up from Rs 3,193 crore in the same time the previous year. Eicher Motors said in a regulatory filing that the revenue recorded in the March quarter was the highest ever for the firm and was the fifth consecutive quarter of generating record revenues.
Operating margin, computed as Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization), was Rs 934 crore for the quarter under review, up 23 percent from Rs 757 crore in the same quarter of the previous fiscal year. Margins increased by 24.5 percent from 23.7 percent in the previous fiscal quarter.
Royal Enfield sold 2.14 lakh units in the March quarter, an increase of 18% over the same period last year.
“We saw overall stabilisation of supply chain, markets, and also the organization, and made significant progress on all important initiatives resulting in our best ever business and financial performance, both at Royal Enfield and VE Commercial Vehicles,” said Siddhartha Lal, Managing Director, Eicher Motors Ltd.
“This year, Royal Enfield launched the Hunter 350 and the Super Meteor 650, and the consumer response to these motorcycles has been phenomenal around the world.” We’ve also made significant work on our EV motorbike plans and had a wonderful start to our cooperation with Stark Future, so we’re optimistic in our EV journey. We had a fantastic year at VE Commercial Vehicles as well, with our highest-ever sales and revenue, as well as excellent market-share improvements across sectors. At the Auto Expo 2023, we also displayed a variety of alternative fuel and future-ready choices,” Lal said.
The board has recommended a final dividend of Rs 37 per equity share of face value of Re 1 each for fiscal FY23, subject to the approval of the shareholders at the ensuing 41st Annual General Meeting. The dividend must be paid or shipped within 30 days following shareholder approval.
Eicher Motors’ stock closed unchanged on Thursday at Rs 3,409 per share. The stock has increased by 9 percent in the previous month and by 6 percent year to date. Eicher Motors shares began at Rs 3,417 each, going on to touch an intra-day high of Rs 3,419.30, and a low of Rs 3,389.05.