Eicher Motors Ltd. (EML) registered total income from operations at INR 3,253.2 crores for the half year ended June 2012. Operating EBIDTA was INR 319.7 crores and PAT INR 276 crores.
For the Q2 ending June 2012, total income from operations was INR 1,585 crores, with an operating EBIDTA of INR 139.5 crores and PAT of INR 112.6 crores.
Speaking on the results, Mr. Siddhartha Lal, Managing Director & CEO, Eicher Motors Ltd., said: “At Eicher Motors the last quarter has been very significant both in terms of strategic direction and focused execution. Our continued focus on product strategies and operational efficiencies in both the businesses – VECV and Royal Enfield – has helped us achieve growth in sales and profits, despite challenging market conditions, especially in commercial vehicles. Our half-yearly total income grew by 22.5% and profits after tax grew by 15.7%.”
VECV’s Eicher Trucks & Buses Division (ETB) continued its momentum with robust growth figures, selling 11,864 units in Q2 2012 as compared to 10,907 units in the corresponding period last year. In the 5-14T segment ETB has improved its market share to 31.7 per cent in Q2 2012. In the heavy duty segment, it improved its Q2 2011 performance by 35.5 per cent at 1,906 units sold in Q2 2012, thereby improving its market share from 2.7 per cent to 4.8 per cent. In the bus segment, ETB’s quarterly volumes stood at 2,784 units being sold in Q2 2012, a growth of 30.8 per cent over the corresponding period last year. The market share in the bus segment in Q2 2012 has gone up to 13.4 per cent from 12.4 per cent in the same period last year.
Commenting on VECV’s performance, Mr. Siddhartha Lal said: “VECV’s Eicher Trucks and Buses Division continues to grow even when the industry at large has slowed down due to the tough economic environment. For H1, 2012 ETB sold 26,059 units as compared to 23,412 units in H1, 2011, registering a volume growth of 11.3%. In Q2 2012, ETB has registered a volume growth of 8.8% to outpace the industry that has dropped by 11.3%. This surge is attributed to our focused strategy of driving growth and improved market share in the heavy duty and bus segments that has particularly done well for ETB in this quarter”. In Q2 2012, ETB has recorded the highest-ever quarterly market share of 4.8% in the heavy duty segment. Further, in the bus segment ETB has registered the best-ever quarterly volume with 2,784 units being sold. The quality and reliability of our products at ETB has helped us secure a big order of 1,019 buses from the Gujarat State Road Transport Corporation in June 2012”, he added.
“At Eicher Motors Ltd., we are committed to exploring and pursuing opportunities for long-term profitable growth and value creation for our stakeholders. As a strategic initiative in that direction, the company signed in July an equal representation (50:50) joint venture agreement with Polaris Industries Inc. to set up a greenfield project. The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris will allow us to enter into a new vehicle segment”.