Eicher Motors Q4 Results 2022: reported PAT at Rs.610 crore, up by 16%

On 13th May 2022, Eicher Motors announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- Eicher Motors Ltd declared a consolidated profit after tax (PAT) of Rs.610 crore for Q4FY22, up 16% from Rs.526 crore in the year-ago period.

- During the quarter, Royal Enfield recorded sales of 182,125 motorcycles, down by 10.4 percent from 203,343 motorcycles sold during the same period last year.

- The company reported consolidated sales of Rs.3193 crore for the quarter with a growth of 8.60% YoY.

- EBITDA at the end of the quarter was at Rs.757 Crores compared to Rs.634 crores in Q4FY21.

-The company reported PAT at Rs.610 Crore compared to Rs.526 crore in Q4FY21, showing a growth of 15.96%.

FY2022:

- The maker of iconic Royal Enfield reported a year-on-year (YoY) growth of 8.6 percent in its consolidated revenue at Rs 3,193 crore from Rs 2,940 crore in the corresponding period of the previous year.

- EBITDA at the end of the year was at Rs.2172 Crores compared to Rs.1783 crores in FY2021.

- For FY2022, PAT jumped 25% to Rs 1,677 crore from Rs 1,347 crore in FY2021.

- Consolidated revenues rose by 18 percent to Rs 10,298 crore from Rs 8,720 in FY2021. The growth was led by a YoY increase in average selling prices (ASPs) due to a richer model mix and price hikes taken over the past few quarters. This, however, was partly offset by a YoY decline in volumes for Royal Enfield.

- Royal Enfield registered record volumes in export markets for the year marking a growth of over 108 percent over FY21.

- During FY2022, Royal Enfield registered motorcycle sales at 595,474, down 2.3 percent from 609,403 in FY21.

- The revenue from operations for the company’s joint venture with Volvo came in at Rs 12,724 crores, up by 46.7 percent over the previous year’s revenue of Rs. 8,676 crores. 

- Profit after tax for the Volvo business stood at Rs 111 crores as against Rs 57 crores during last fiscal. The business recorded sales of 57,077 vehicles for FY22, up 38.3 percent over 41,268 vehicles in FY21.
 

Costs: 
The lower volumes led to a decrease in raw material costs as a percentage of revenue from operations to 57 percent compared to 61 percent during the corresponding period last year. The raw material costs however are higher compared to the preceding quarter when they had stood at a mere 49 percent of revenue from operations due to a significant decline in volumes.

Employee costs dipped marginally by 100 bps on year to 7 percent of revenue from operations. On a sequential basis, the employee costs were stable.

Other expenses on the other hand picked up 100 bps from last year to 13 percent and were stable on a sequential basis.

The company approved a dividend of Rs 21 per equity share of the face value of Re 1 each  for FY2022.

Commenting on the results Siddhartha Lal, Managing Director, Eicher Motors Ltd. said: “The year gone by was very significant for Eicher Motors Limited, as we registered considerable progress towards our long term strategic business vision”.

“Over the last eight years, we have made concerted efforts in becoming a premium, global player, concentrating on some of the toughest motorcycle markets in the world, with an ambition to sustainably grow our overseas presence and business”, Lal added.

Commenting on the volumes B. Govindarajan, CEO - Royal Enfield and Wholetime Director said: “We continued to deliver on our global focus with unprecedented growth and strengthened our international operations with the setting up of two CKD facilities this year, in Colombia and Thailand, and expanding our global retail network to close to 3000 stores during the year”. 

“Our consistent efforts to unlock the potential of fostering a pure motorcycling ecosystem has resulted in a 45 percent year-on-year growth in our non-motorcycling business backed by a razor-sharp focus on growing service and spares business, as well as our motorcycle apparel and accessories business”, Govindrajan added.