Chennai: Eicher Motors said on Monday that its subsidiary Royal Enfield’s total revenue from operations rose 3 per cent to Rs 2,341 crore in the quarter ended December 2018 compared to Rs 2,269 crore in the same period of last year.
The EBITDA (earnings before interest, tax, depreciation and amortisation) was Rs 680 crore, down by 4 per cent compared to Rs 707 crore in the same period of last year. Profit after tax grew by 2 per cent to Rs 533 crore from Rs 521 crore.
Royal Enfield sold 193,871 motorcycles in the quarter, registering a decline of 6 per cent from 202,736 motorcycles sold in the same period last year, the company informed stock exchanges.
“The latter half of 2018 was a challenging period for the two-wheeler industry in India,” said Siddhartha Lal, Managing Director and CEO of Eicher Motors. “Factors like increased insurance requirements, rising raw material costs and the subsequent price increase due to regulatory safety requirements impacted the momentum of the industry.”
Lal said Royal Enfield’s market share recorded improvement on a sequential basis while volumes in the quarter were impacted. “We believe this is a temporary impact due to a price reset. We continue to remain optimistic about the trend of premiumisation in the motorcycling industry, and are confident that this trend will continue in the future.”
Meanwhile, Volvo Eicher Commercial Vehicles revenue were up 9 per cent to Rs 2,818 crore from Rs 2,590 crore but EBITDA declined by 18 per cent to Rs 186 crore from Rs 226 crore in the same period last year. Profit after tax declined by 43 per cent to Rs 76 crore from Rs 133 crore in Q3 of 2017-18.
The company sold 16,936 trucks and buses in Q3 of FY 19, growing 4 per cent over the same period last year.