Eicher Motors’ Q2 PAT rose by 76% year over year to Rs. 657 Crore

Healthy volume growth drove performance, with help from declining raw-material costs and price increases.

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In the three months that ended in September, Eicher Motors reported revenue growth of 56.4% year over year (YoY) and net profit growth of 76% YoY. Revenue reported for Q2FY23 was Rs 3,519 crore on a consolidated basis, and PAT was Rs 657 crore. The company reported consolidated revenue of Rs 2,250 crore and PAT of Rs 373 crore for the same period a year ago.

Ebitda for the second quarter of FY23 was Rs. 822 crore, an increase of 75% from Rs. 470 crore in the comparable quarter.

The strong figures were driven by volume growth, a better product mix, and an increase in market share for commercial vehicles. According to a press release from the firm, Royal Enfield concluded the quarter with its outstanding performance in the domestic markets with total dispatches at 183,067 units, an increase of more than 73.4% over 105,593 units during the same period last year.

For the motorcycle segment, sales in October were strong. The company sold 80,792 units, which was a 79% increase over previous October’s numbers and the greatest monthly sales total in history. Speaking on VECV’s performance Vinod Aggarwal, MD and CEO VECV said “During the second quarter VECV strengthened market share particularly in heavy duty truck and bus segments for both Eicher and Volvo brands. Vehicle sales for the first half stand at 35,085 vehicles marking a growth of 67.6% over corresponding period last year.”

The car major was anticipated by the market to report another quarter of exceptional year-over-year sales and profit growth, driven by a low base, easing supply issues, a decline in raw material prices, and pricing increases.

Separately, the company reported a 56.5% increase in revenue and a 79% increase in net profit for the three months ending in September. In Q2FY23, it had a stand-alone revenue of Rs 3,354 crore and a net profit of Rs 615 crore.