Eicher Motors on Thursday reported a net profit of Rs 576 crore for the April-June period, driven by strong performance from its flagship brand Royal Enfield. Consolidated net profit was up 25 per cent year-on-year compared with Rs 460 crore for the quarter ended June 30, 2017. Revenue from operations came in at a record Rs 2,548 crore for the quarter ended June 2018, as against Rs 2,255 crore for the corresponding period a year ago.
Royal Enfield, the manufacturer of middleweight motorcycles, sold 2,25,286 units in the quarter ended June. That marked an increase of 23 per cent from sales of 1,83,731 motorcycles in the year-ago period.
Commenting on Royal Enfield's performance, Eicher Motors CEO and managing director Siddhartha Lal said, "We continue to make significant progress on all the targets that we have set for ourselves. We are happy to report a strong financial performance for the quarter."
VE Commercial Vehicles, Eicher's joint-venture with Sweden's AB Volvo, registered a sales growth of 41 per cent in the quarter. Eicher Motors said the growth in the commercial vehicles industry is likely to continue due to a variety of factors including infrastructure development, growth in the manufacturing sector post-GST and strong replacement demand.
Speaking on the auto sector's shift towards more environment-friendly measures, Mr Lal said India will surely face teething problems, however in the long run BS-VI emission norms will be beneficial for all.
As a company, Eicher wants to continue to focus on their presence in South East Asia and Latin America and in terms of product specifications is betting on their twin bike launches in September this year.