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Highlights from the Quarter (Q1FY22):

For Q1FY22, Eicher reported net sales of Rs. 1,974 cr, up 141% from the low base of Q1FY21, but down 33% from Q4FY21, which happened to be the best quarter in the company’s history. The QoQ decline in revenues was due to the 2 nd wave of the pandemic, which resulted in strict lockdowns again throughout the country, however the impact was not as bad as last time. Motorcycle volumes for the quarter stood at 1,22,170, up 109% YoY.

The company reported EBITDA of Rs. 363 cr, down 43% QoQ, at an EBITDA margin of 18%. The global semiconductor shortage and bottlenecks in the supply chain persisted through the quarter. Net Profit for the quarter stood at Rs. 237 cr, translating to a net margin of 12% and delivering an EPS of Rs. 8.68. Q1FY22 was a stellar quarter for the company in terms of exports. The company sold 17,493 motorcycles abroad, up more than 400% from 3,444 units this time last year and 83% more than Q1FY20.

For Q1FY22, Volvo Eicher Commercial Vehicle’s (VECV) revenue from operations was Rs. 1,639 cr, up by 156% from Rs. 641 cr in the same period last year. EBITDA for the quarter was Rs. 18 cr which is significantly higher as compared to a EBITDA loss of Rs. 72 cr in the corresponding quarter of the previous year. There was a net loss of Rs. 72 cr for the quarter, as compared to a net loss of Rs. 120 cr for the same period last year. VECV sold 5,806 trucks and buses in the quarter, a notable increase of 173% from 2,129 trucks and buses sold over the same period in the last financial year.

Other updates from the company include:

* The succession of Mr. B Govindarajan, who will assume the leadership responsibilities at Royal Enfield as Mr. Vinod Dasari steps down from his role as CEO. The core management team stays the same and so do the company’s long term goals. Mr. Govindarajan is a veteran at Eicher Motors, with a combined experience of over 23 years across Eicher and Royal Enfield.

* The company has set up its second local assembly unit in Colombia, after setting up its first such unit in Argentina in September 2020.

* The company sold 4,271 units under the VECV banner, an increase of over 75% MoM, indicating a strong recovery in demand and Royal Enfield sold 44,038 units in July’22, 11% of which were in the export markets.

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