Eicher Motors Reports Loss Of ₹ 55 Crore In June Quarter

Eicher Motors on Thursday reported consolidated loss of ₹ 55 crore in quarter ended June 30 against profit of ₹ 452 crore…
Eicher Motors Reports Loss Of ₹ 55 Crore In June Quarter

Eicher Motors on Thursday reported consolidated loss of ₹ 55 crore in quarter ended June 30 against profit of ₹ 452 crore during the same period last year. The company’s revenue from operations slumped 66 per cent to ₹ 818.

It had clocked sales of Rs 2,382 crore in Q1 FY20. Earnings before interest, tax, depreciation and amortisation (EBITDA) were at Rs 4 crore in the quarter ended June as compared to Rs 614 crore in the same quarter of previous financial year.

Royal Enfield sold 58,383 motorcycles in the quarter, a decline of 68 per cent from 181,966 motorcycles sold over the same period in FY 2019-20., Eicher Motors said in a press release.

“Towards the end of the quarter we’ve witnessed encouraging consumer sentiment which was evident in our sales for the month of June. We believe that this trend will continue into this quarter as well,” Lal said, adding that the motorcycle business was doing very well in international markets.

According to Vinod Dasari, chief executive officer at Royal Enfield, the bookings are back to pre-covid levels and the company has a pending orderbook of about 40,000 units currently.

However, he warned that the production is grappling with the supply chain disruptions from the vendors.

“From a business point of view the initial consumer sentiment over the last two months has been very encouraging. Demand from semi-urban and rural towns have picked up well, and our network of studio stores across the country have been able to cater to this demand. There is pent up demand and we are optimistic about stronger recovery once supply chain stabilizes,” said Dasari.

Royal Enfield had resumed its manufacturing units from the first week of May after a 40-day lockdown.

The company has 921 dealerships and 638 studio stores operational across the country.

Eicher’s subsidiary Volvo Eicher Commercial Vehicles Ltd or VECV posted revenue from operations of ₹641 crores, down 72% from Rs. 2,255 crores in the same period last year. The CV business had posted a loss of ₹120 crore in the past quarter.

VECV saw volumes decline 84% YoY to 2,129 units as against 13,331 units in the year-ago period.

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