Royal Enfield’s parent company Eicher Motors Limited, announced its result for the third quarter of the current fiscal year. The company has reported a 3% rise in the revenue from the sales operation of Royal Enfield taking its revenue to Rs 2,341 Crore from Rs 2,269 Crore of the same quarter, in the previous fiscal.
But the number of Enfield’s sold witnessed a 6% decline in numbers. It sold 1,93,871 in the current quarter, compared to 2,02,736 motorbikes in the same quarter of previous fiscal.
The Earnings before Interests, Taxes, Depreciation and Amortization (EBTIDA), were also 6% down to Rs 680 crore from RS 707 Crore compared to third quarter of previous fiscal. A marginal 2% rise was seen in the Profit after taxes(PAT) taking it to Rs 533 Crore for the said fiscal.
Commenting on Royal Enfield’s performance, Siddhartha Lal, MD and CEO Eicher Motors Ltd, said, “The latter half of 2018 was a challenging period for the two-wheeler industry in India. Factors like increased insurance requirements, rising raw material costs and the subsequent price increase due to regulatory safety requirements impacted the momentum of the industry. Royal Enfield’s market share recorded improvement on a sequential basis, while volumes in the quarter were impacted. We believe this is a temporary impact due to a price reset. We continue to remain optimistic about the trend of premiumisation in the motorcycling industry, and are confident that this trend will continue in the future.”
In the third quarter, Enfield launched 3 motorbikes viz. the new 650 Twin motorcycle, Continental GT 650 and the Interceptor 650. The retail sales have already been started India, while deliveries in the foreign market will kick-start soon.