In the quarter ended December 2018, Royal Enfield’s total revenue from operations rose 3% to Rs. 2,341 crore, compared to Rs. 2,269 crores in the same period last year; EBITDA was Rs. 680 crores, down by 4% compared to Rs 707 crores in the same period last year; Profit After Tax grew by 2% to Rs. 533 crores from Rs. 521 crores in the same period last year. Royal Enfield sold 193,871 motorcycles in the quarter, registering a decline of 6% from 202,736 motorcycles sold in the same period last year.
In the Commercial Vehicles (CV) segment, VE Commercial Vehicles (VECV) – Eicher’s joint-venture with AB Volvo – was affected by the industry slowdown especially in Heavy Duty (HD) segment. VECV’s revenue from operations rose by 9% to Rs. 2,818 crores from Rs. 2,590 crores in the same period last year; EBITDA declined by 18% to Rs. 186 crores from Rs. 226 crores in the same period last year; Profit After Tax declined by 43% to Rs. 76 crores from Rs. 133 crores last year.
VECV sold 16,936 trucks and buses in the quarter, growing 4% over the same period last year. VECV’s performance in the LMD segment continued to be in line with the industry registering 9% growth on a year-on-year basis. In the HD segment, the VECV recorded a growth of 4% while industry declined by 13% year-on-year. During the quarter, certain non-banking financial companies (NBFCs) scaled back their lending activities affecting sales. The trend of heavy discounting continues in the CV industry despite the sustained demand.