Eicher Motors reported a 21% year-on-year increase in consolidated net profit to ₹1,421 crore for the third quarter of FY24, driven by strong demand for its Royal Enfield motorcycles. The company’s revenue from operations grew 12% to ₹4,179 crore compared to ₹3,721 crore in the same period last year.

Financial Highlights

The automaker’s EBITDA margin improved to 25.1% from 24.2% in Q3 FY23, with total vehicle sales rising 2% to 229,894 units. Royal Enfield contributed significantly with 220,282 motorcycles sold during the quarter, maintaining its leadership in India’s 250cc+ motorcycle segment.

Capacity Expansion Approved

Eicher’s board approved a ₹1,500 crore investment to expand Royal Enfield’s production capacity from 1.2 million to 2 million units annually by 2025. This strategic move aims to capitalize on growing domestic and international demand, particularly in premium motorcycle markets.

Management highlighted improved semiconductor supplies and cost optimization measures as key factors behind the robust performance. The company declared an interim dividend of ₹51 per share, payable by March 2024.

Market Reaction and Outlook

Analysts reacted positively to the results, with several brokerages upgrading their price targets for Eicher Motors shares. The stock closed 1.8% higher on the BSE following the announcement. Company executives expressed confidence in maintaining double-digit revenue growth through premiumization strategies and new product launches.

Royal Enfield continues expanding its global footprint, recently entering Japan and strengthening presence in European markets. The automaker plans to launch multiple new models in 2024, including electric vehicle prototypes, as part of its sustainability roadmap.

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