Eicher Motors reports a 48% increase in Q4 profit year on year

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter ending March 31, 2023, reached Rs 934 crore, a significant increase of 23.3% over Rs 757 crore in the same period in the previous fiscal year.

Eicher Motors Limited (EML) has revealed its fourth-quarter financial results, which show a consolidated net profit of Rs 905 crore, a 48% rise over the same period the previous year when the profit was Rs 610 crore.

The company recorded its highest-ever quarterly income from operations of Rs 3,804 crore, representing a 19.1% increase over the previous year's equivalent quarter revenue of Rs 3,193 crore.

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Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter ending March 31, 2023, reached Rs 934 crore, a significant increase of 23.3% over Rs 757 crore in the same period in the previous fiscal year.

Eicher Motors' board of directors has approved a dividend of Rs 37 per share for the fiscal year ending March 2023. The dividend will be paid out within 30 days following shareholder approval.

Eicher Motors' Managing Director, Siddhartha Lal, expressed pleasure with the company's achievements, noting that it was an exceptional year for Eicher Motors Ltd. He cited the company's considerable growth and best-ever business and financial performance in both Royal Enfield and VE Commercial Vehicles, as well as the stabilization of the supply chain, markets, and organization.

VE Commercial Vehicles

VE Commercial Vehicles (VECV) also performed admirably, reaching its highest-ever quarterly income from operations of Rs 6,200 crore, a significant 43.9% rise over Rs 4,307 crore in the previous fiscal year's similar period. VECV's EBITDA increased by 114.7% to Rs 619 crore, up from Rs 288 crore.

Also Read: VECV reported an overall sales increase of 18.9 per cent to 6,567 units in April 2023

In addition, VECV achieved its highest-ever quarterly sales of 26,376 units, a 31.3% increase over the same period last year. Lal applauded VECV's excellent market-share growth across segments, as well as the Auto Expo 2023 demonstration of alternative fuel and future-ready alternatives.

In addition, the Eicher Motors board of directors has approved a financial outlay of Rs 1,000 crore for the fiscal year 2023-24. Under the Internal Combustion Engine portfolio, this investment will include funding for an EV production plant, product development, and new product development.

Overall, Eicher Motors had a fantastic year, with good financial results in both its Royal Enfield and VE Commercial Vehicles divisions. The company's focus on innovation, extending its product portfolio, and entering the EV area has delivered favorable results, laying the groundwork for future growth.