Eicher Motors Limited (EML) has announced its financial results for the first quarter of FY25, posting a significant 50% increase in consolidated net profit to Rs 918.34 crore. The company’s revenue also witnessed a substantial growth, rising 17.3% year-on-year (YoY) to Rs 3,986 crore in Q1 FY25.
The impressive earnings can be attributed to the company’s successful strategy of focusing on premium products and increasing its market share in the domestic and international markets. Royal Enfield, EML’s flagship brand, reported a 21.1% increase in sales, selling 225,368 units of motorcycles in Q1 FY25, up from 186,032 units in the same quarter of the previous financial year.
Domestic sales contributed significantly to the company’s growth, with a 31% increase in sales to 207,171 units, up from 157,642 units in Q1 FY24. However, exports declined by 31% during the quarter to 20,535 units, down from 29,563 units in the same period last fiscal year.
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also witnessed a substantial growth, rising 22.8% to Rs 1,021 crore in Q1 FY25, compared to Rs 831 crore in the same quarter of the previous financial year.
EML’s joint venture with Volvo Group, VE Commercial Vehicles (VECV), also contributed to the company’s profit, with a 12.5% increase in revenue to Rs 3,444 crore in Q1 FY25. VECV’s net profit surged 71.4% to Rs 187.5 crore during the quarter.
The company’s strong performance in Q1 FY25 is a testament to its successful strategy and its ability to adapt to changing market conditions. With its focus on premium products and increasing market share, EML is well-positioned to continue its growth trajectory in the coming quarters.
