Royal Enfield's parent company Eicher reports 45% dip in PAT for March quarter
Eicher Motors on Friday reported a 44.22% decline in its consolidated profit after tax (PAT) to ₹304 crore for the fourth quarter ended March 31, 2020.
The company had posted a PAT of ₹545 crore for the corresponding period of the previous financial year, Eicher Motors said in a regulatory filing.
Its consolidated total revenue from operations stood at ₹2,208 crore for the quarter under consideration as against ₹2,500 crore for the same period of the previous year.
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Royal Enfield sold 1,63,083 motorcycles in the fourth quarter, a decline of 17% from 1,97,567 motorcycles sold over the corresponding period in the last financial year, the company said.
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For the financial year 2019-20, the company reported a PAT of ₹1,827 crore as compared with ₹2,203 crore in 2018-19.
Royal Enfield's total revenue from operations was down by 7% to ₹9,154 crore, compared with ₹9,797 crore recorded for the year ended March 2019.
The company sold 6,97,582 units during the 2019-20, down 15% from 8,22,724 units in 2018-19.
Eicher Motors Managing Director Siddhartha Lal said 2020 has turned out to be a tough year overall for the industry, and the global pandemic during the last quarter brought with it unprecedented challenges and disruptive changes.
"At Eicher Motors, we have witnessed the impact of this situation but have chosen to focus on the opportunities within these problems. With commitment to our long-term plans, we moved swiftly to tackle the roadblocks, to safeguard our businesses and to do our bit towards relief and support measures," he added.
Now, as the lockdown is easing out, the company is witnessing strong initial customer interest and confidence, Lal said.
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When asked if the company is looking at cutting capital expenditure this fiscal, he replied in negative.
"It will remain more or so like last year. We are already through with investment on infrastructure and now, the focus would be on products," Lal said in a conference call.
The company also ruled out any lay-offs due to the challenging business environment currently.
Royal Enfield CEO Vinod K Dasari said the last quarter of this fiscal was particularly challenging in the wake of the coronavirus pandemic.
"The company has since resumed operations, and more than 90% of its retail network is now operational," he added.
