Eicher Motors Q1 FY25 Results Show 20% Profit Increase
Eicher Motors Limited (EML) reported a notable 20% increase in profit for Q1 FY25, reaching ₹1,101 crore compared to ₹918 crore in the same quarter last year. This impressive growth is driven by favourable commodity prices, inventory benefits, and increased volume in the Royal Enfield segment. The company’s total revenue from operations soared to ₹4,393 crore, reflecting a 10% year-on-year rise. Additionally, EBITDA rose by 14% to ₹1,165 crore, with the EBITDA margin improving to 26.5%, up from 25.6% in Q1 FY24.
Royal Enfield Drives Revenue Growth
Royal Enfield, a key division of Eicher Motors, continued to significantly impact revenue. In Q1 FY25, Royal Enfield sold 2,27,736 motorcycles, a slight increase from 2,25,368 units sold in the same period last year. The brand’s consistent performance highlights its strong market presence and enduring appeal in both India and international markets. Royal Enfield’s blend of modern features and rich heritage continues to attract motorcyclists, contributing substantially to EML’s overall growth.
VECV Performance and Challenges
Volvo Eicher Commercial Vehicles Limited (VECV), a joint venture between Eicher Motors and Sweden’s AB Volvo, also contributed to EML’s performance. VECV reported a 1.8% increase in revenue, reaching ₹5,070 crore, but its EBITDA slightly decreased to ₹385 crore from ₹387 crore in the same quarter last year. Despite this minor decline, VECV’s profit after tax improved to ₹319 crore, up from ₹181 crore in Q1 FY24, demonstrating its ability to adapt and grow in a competitive sector.
Positive Stock Market Reaction
Following the release of these strong Q1 results, Eicher Motors’ stock price saw a significant rise, increasing nearly 5% in intraday trading to ₹4,790.05 per share. This positive market reaction reflects investor confidence in EML’s robust performance and future growth prospects, driven by strong sales of Royal Enfield motorcycles and steady progress across its divisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.