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Eicher Motors reported whole income of Rs. 818 crore from operations, witnessing a drop of 66 per cent, versus Rs. 2,382 crore in Q1 of FY 2020. The firm reported a internet lack of Rs. 55 crore through the earlier quarter in opposition to a revenue of Rs. 452 crore throughout the identical interval final fiscal.
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Volumes for Eicher’s core companies, Royal Enfield and VECV dropped considerably in Q1 FY’21
Eicher Motors introduced its outcomes for the quarter of April to June 2020 reporting a lack of 66 per cent in working income. The firm reported its whole income from operations at ₹ 818 crore, versus ₹ 2382 crore in Q1 of the 2019-20 monetary yr. The earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) was ₹ four crore as in comparison with ₹ 614 crore in the identical quarter of the earlier monetary yr. The producer reported a internet lack of ₹ 55 crore through the earlier quarter in opposition to a revenue of ₹ 452 crore throughout the identical interval final fiscal.
Also Read: Royal Enfield Records 5.6% Sales Growth In July Over June 2020; YoY Sales Drop By 36 Per Cent
Commenting on Eicher Motors’ efficiency, Siddhartha Lal, MD – Eicher Motors stated, “The previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. However, we believe that the long term potential for both Royal Enfield and VECV is very promising. 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. International business at Royal Enfield is doing extremely well, led by the modern 650 Twin motorcycles and the Himalayan. The Interceptor 650 has been the highest-selling motorcycle in the middleweight segment in the UK for the last one year. At VECV, we have always remained focused on our long term plans and have rolled out initiatives to improve efficiencies, productivity and further upgrade processes.”
Also Read: Royal Enfield Launches Service On Wheels Initiative
Speaking on Royal Enfield’s efficiency, Vinod Ok. Dasari, CEO, Royal Enfield stated, “Through a challenging environment, we’ve remained focused on the opportunities for Royal Enfield. We’ve worked on strengthening our relationship with our customers and have ensured full support to our network partners. From a consumer point of view, our effort has been to build seamless and hasslefree processes and focus on retail and service excellence. We have launched several initiatives that offer contactless purchase and service experience for the consumer, including the Service on Wheels initiative launched recently. 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 stabilises.”
Royal Enfield bought 58,383 bikes between April and June 2020, witnessing a decline of 68 per cent from 181,966 bikes bought over the identical interval in FY 2019-20. The bike maker resumed operations on May 6, 2020 after having quickly closed its amenities from March 23 onwards as a result of nationwide lockdown. Retail operations, alternatively, resumed because the nation unlocked operations in a phased method. The firm’s 921 dealerships and 638 studio shops at the moment are operational.
Also Read: Eicher Motors Introduces Connected Technology Across Entire Commercial Vehicle Range
For Eicher’s industrial car operations, Volvo Eicher Commercial Vehicles’ (VECV) income from operations stood at ₹ 641 crore, down by 72 per cent from ₹ 2255 crore in the identical interval final fiscal. The EBITDA loss stood at ₹ 72 crore as in opposition to a revenue of ₹ 137 crore final yr within the corresponding quarter. The producer reported a lack of ₹ 120 crore, in opposition to a revenue of ₹ 38 crore final yr. Furthermore, VECV’s gross sales declined by 84 per cent with 2129 models bought final quarter, as in opposition to 13,331 models in Q1 of final yr. Nevertheless, the corporate’s decline in gross sales was decrease than that of the business, which noticed a 91 per cent drop in volumes. The automaker has resumed operations because the market exhibits indicators of restoration.
Speaking on the efficiency Vinod Aggarwal, MD and CEO, VECV stated, “The last quarter has been challenging for the commercial vehicle industry with almost complete washout in the first two months of the quarter on account of the pandemic. Since the economic activity was impacted, movement of goods and services was also severely impacted. As a result, the industry has witnessed one of the worst quarters with an overall volume decline of 91 per cent. We expect the situation to gradually improve starting from the festive months led by infrastructure investments and strong pent up replacement demand.”
Also Read: Volvo Eicher Commercial Vehicles To Acquire Volvo Buses India
VECV had rolled out its BS6 line-up of business automobiles previous to the lockdown with the brand new Eutech6 expertise, whereas it additionally launched linked car expertise throughout its vary final month to supply improved comfort and transparency in operations. The producer extra just lately introduced the acquisition of Volvo Buses India as a part of VECV beneath the Eicher Group.
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