Royal Enfield Contributed 89.5% in Eicher’s Profit for Q1 2016
Royal Enfield itself saw a profit of nearly 70% for Q1 2016
NEW DELHI, 29th JULY, 2016: The motorcycle unit of Eicher Motors – Royal Enfield boosted earnings at Eicher Motors for the first quarter of the current fiscal. Consolidated net profit in Q1 stood at 376.3 crore, which is a generous jump of 58.7 per cent from the same quarter a year ago. The numbers have beaten all analyst and street expectations. But here is the real kicker – of that profit a solid Rs.337.1 crore (or 89.5 per cent!) came from the motorcycle business. Royal Enfield in fact has seen its own profits jump nearly 70 per cent as compared to a 38 per cent increase in Q1 last year. Eicher clocked total income at 1,555.69 crore for the April-June quarter, compared to 1,095.89 crore in Q1’16.
Eicher’s Enfield Ride
Royal Enfield is riding a wave and enjoying much success from its recently launched Himalayan seeing a demand of 1000+ motorcycles a month. “Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally,” said Siddhartha Lal, MD & CEO, Eicher Motors.
The Himalayan is not the only success at Royal Enfield with models like the Continental GT and Classic continuing to see good demand from domestic and export markets. Royal Enfield had opened a new plant in Chennai in 2012, and has just expanded capacity there by opening a second line. This takes total capacity at Royal Enfield up by 225,000 units to 675,000 units annually – no doubt a veritable leap for the niche motorcycle maker.