Eicher Motors Q4 results: Consolidated PAT rises 73% YoY to Rs 526 cr; firm to pay Rs 17 dividend

MUMBAI: Eicher Motors today reported a 73 per cent year-on-year rise in its consolidated net profit to Rs 526.14 crore for the quarter ended March, which was slightly below analysts’ estimates.

The company’s consolidated total revenue from operations climbed 33 per cent on-year to Rs 2,940.3 crore, which was also slightly below Street’s estimates.

Analysts had expected the company to report consolidated net profit of Rs 561.4 crore on sales of Rs 2,975.2 crore.

The company’s earnings were benefited by a low base effect as the year-ago quarter was marred by the national lockdown in March 2020 to contain the spread of the Covid-19 virus.

The company’s board also approved a final dividend of Rs 17 per share for the financial year ended March 31, 2021.

A key highlight of the Royal Enfield maker’s earnings was the sharp jump in raw material costs during the quarter. Eicher Motors’ cost of inputs soared 47.5 per cent in the quarter to Rs 1,789.6 crore. Consolidated total expenses including finance costs rose 29 per cent on-year to Rs 2,434.7 crore.

Despite the sharp jump in input costs, the company managed to grow its consolidated operating profit by 47 per cent on-year to Rs 634 crore, which was also below analysts’ estimates. The motorcycle maker’s consolidated operating margin expanded 200 basis points on-year to 21.56 per cent.

“Royal Enfield witnessed very good pickup in the second half of the year, and registered a strong performance in Q4. We have seen encouraging demand coming from rural as well as urban segments,” said Siddharth Lal, managing directors of Eicher Motors.

Eicher Motors’ commercial vehicle business also posted a strong quarter with sales rising 71.4 per cent on-year to Rs 3,602 crore. The company’s consolidated operating profit of the commercial business grew to Rs 320 crore as against Rs 37 crore.

Shares of Eicher Motors ended 0.9 per cent lower at Rs 2,610.8 on the National Stock Exchange.