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Eicher Motors Limited (EML) announces its best ever financial results for twelve month period ending March 31st, 2016

~For Eicher Motors Limited’s (EML) standalone business i.e. Royal Enfield for twelve month period ending March 31, 2016, EML posted the highest ever-  total income from operations at USD 798.47 million, operating profit (EBIT) of 26% and PAT at USD 155.27 million~

~An investment of USD 90  million to be made in EML’s Royal Enfield business in FY 2016-17
Bangkok, May 9, 2016 - Eicher Motors Limited announced the audited consolidated financial results for the fifth quarter and financial year ended March 31, 2016 for a period of 15 months (January 1, 2015 - March 31, 2016).

The Board of Directors at Eicher Motors Limited approved the results with the performance highlights as follows:

For Eicher Motors Limited’s (EML) standalone business i.e. Royal Enfield for 15 month period ending March 2016 at a standalone level, Eicher Motors Limited reported total income from operations at USD 954.6, operating profit (EBIT) at USD 245.7 million, EBIT% at 25.7%  and Profit After Tax (PAT) at USD 189.7.

In 2015-16, Eicher Motors Limited has changed its financial reporting period from calendar year to financial year. Therefore, the numbers for the 15 month period (January 1, 2015- March 31, 2016) are not comparable to the immediately preceding calendar year period (January 1 - December 31, 2014). To provide comparable numbers in this media release, we have used data for the twelve month period ending March 31, 2016 as against the twelve month period ending March 31, 2015. The 15 month period, wherever used, has been specifically stated.

The performance highlights are as follows:

Standalone Results Quarter ended March 2016 as compared to Quarter ended March 2015 and Financial year 2015-16 compared to Financial year 2014-15:


Q5 FY 16
Q1 FY 16
% growth
FY 2015-16
FY 2014-15
% growth
Total Income from operations
          228.87
          142.39
60.7%
          798.47
          512.77
55.7%
Operating Profit (EBIT)
             62.90
             34.38
82.9%
          207.85
          119.10
74.5%
Operating Margin (EBIT %)
27.5%
24.1%

26.0%
23.2%

Profit After Tax
             53.23
             31.62
68.3%
          155.27
             93.45
66.1%

Note: All figures are in USD Millions except where specified

Eicher Motors Limited – standalone, i.e. the Royal Enfield business, posted its best ever performance in Quarter ended March 2016. In this quarter, Royal Enfield sold 148,185 motorcycles, registering its best ever quarterly sales and posting a growth of 59.6% over 92,845 motorcycles sold in the same period last year and in the financial year period (April 2015 – March 2016) calendar, Royal Enfield sold 508,099 motorcycles as compared to 331,169 motorcycles registering a growth of 53.4%
Commenting on Royal Enfield’s performance Mr. Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “Royal Enfield performed exceedingly well in the last quarter, bringing a phenomenal 2015-16 financial year to an end. This has been a milestone year for us with the launch of the Himalayan- our first ever completely ground-up motorcycle. With Himalayan we introduced a purpose-built and versatile motorcycle that makes adventure touring more accessible in India. The motorcycle has been extremely well received by the community and customers that is reflected in our strong order book for the Himalayan.”

“Royal Enfield has been investing in building strong foundations across all areas of its business. We will be investing USD 91.7 million towards product development, setting up of the two technical centres, in Leicestershire, UK and Chennai, India, enhancing our manufacturing capacity and market development activities across geographies. In FY 2016-17, we plan to manufacture 675,000 motorcycles. 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” he added.
Royal Enfield’s key highlights in the period from January 2015- March 2016

  • Royal Enfield strengthened its retail footprint in India with addition of 145 new dealerships, taking it to 500+ stores in the country. More than 80% of the stores reflect Royal Enfield’s new unified global retail identity.  
  • In May 2015, Royal Enfield also launched its flagship gear store in Khan Market, one of India’s most definitive retail spaces. Royal Enfield’s online gear store – store.royalenfield.com went live in April 2015. Royal Enfield also introduced its first ever limited edition of motorcycles inspired by the Despatch Riders of the World Wars.
  • To enhance its customer service experience, Royal Enfield now has 4639 service bays across the country with the addition of 1294 bays in 2015-16 period that will help in expanding the service footprint in India
  • Continuing with its focussed strategic international thrust, Royal Enfield opened its first direct distribution subsidiary in Milwaukee, North America. It also opened exclusive stores in nodal cities like London, Paris, Dubai, Madrid, Bogota and Medellin. Royal Enfield also entered two of the biggest two-wheeler markets in the world, with the launch of its first exclusive stores in Jakarta, Indonesia and Bangkok, Thailand.
  • With a view to deliver exciting and path breaking mid-sized motorcycles, Royal Enfield acquired Harris Performance, a motorcycle engineering and design firm based in UK in May 2015.
  • The progress of Royal Enfield tech centres in Chennai, Tamil Nadu and in Leicester, UK continues to be on track. The UK tech centre will be operational by the latter half of FY 2016-17 while the Chennai tech centre will be operational by 2017-18

At the group level for Eicher Motors Ltd, that includes VECV - the joint venture with Volvo Group in the commercial vehicle space, the Board of Directors at Eicher Motors Limited approved the 15 months results with the performance highlights as follows:

For the 15 month period ending March 2016 at a consolidated level, Eicher Motors Limited reported total income from operations at USD 2420.3 million, operating profit (EBIT) USD 307.9 million, EBIT % at 12.7%, Profit After Tax (PAT) at USD 224 million and Profit After Tax and Minority Interest at USD 197.1 million.

For the consolidated business for the twelve month period ending March 31, 2016, Eicher Motors  Limited posted the highest ever - total income from operations at USD 2004.34 million, operating profit (EBIT) of 13% and PAT at USD 188.76 million

Consolidated Results Quarter ended March 2016 as compared to Quarter ending March 2015 and twelve month period ending March 31st, 2016 as compared to twelve month period ending March 31s, 2015:

Q5 FY 16
Q1 FY 16
% growth
FY 2015-16
FY 2014-15
% growth
Total Income from operations
          557.73
          380.42
46.6%
       2,004.34
       1,433.24
39.8%
Operating Profit (EBIT)
             78.71
             42.84
83.7%
          260.67
          154.28
69.0%
Operating Margin (EBIT %)
14.1%
11.3%

13.0%
10.8%

Profit After Tax
             56.66
             32.04
76.8%
          188.76
          116.38
62.2%
Profit After Tax and Minority Interest
             49.55
             28.93
71.3%
          165.38
          102.58
61.2%
Note: All figures are in USD Millions except where specified

About Eicher Motors Limited:

Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a catalyst in the green revolution in India with the production of India’s first agricultural tractor in 1959. EML is now a leading player in the Indian automotive space. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The oldest motorcycle brand in continuous production world-wide, Royal Enfield has witnessed a huge surge in demand in the recent past, and is charting its course to be the leading player in the mid-sized motorcycle segment globally. EML’s joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets. EML’s joint venture with US based Polaris Industries Inc formed in 2012, Eicher Polaris Private Ltd. (EPPL) launched the Multix, a new 3-in-1 vehicle purpose built for the independent businessman in June 2015. For the fifteen months ended March 2016, Eicher Motors recorded its highest ever total income of INR 2420 crores (USD 2.4 billion) and is listed on the Bombay and National Stock Exchanges. As of April 1st 2016, Eicher Motors Limited became a part of the Nifty 50 Index.

Please visit our website: www.eichermotors.com
Disclaimer:
All statements included or incorporated by reference in this media release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Although EML believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and EML undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.