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Eicher Motors on Wednesday has reported consolidated net profit of ₹462 crore for the fourth quarter ended on March 31, a marginal growth compared with a net profit of ₹459 crore during the same period last year.
The company was hit by one-time loss of ₹187 crore due to the closure of Eicher Polaris (EPPL), its 50:50 joint venture with the US-based Polaris Inc.
“Our net profit for the fourth quarter grew by just ₹3 crore as a result of one-time impairment we had to take due to the closure of EPPL,” Siddhartha Lal, Managing Director and Chief Executive Officer, said in a conference call.
The EPPL board on March 9 had decided to wind down the operations of the company.
The company’s revenue from operations stood at ₹2,528 crore for the fourth quarter against ₹1,888 crore in the January-March quarter last year.
For the financial year ended March 31, Eicher posted a net profit of ₹1,960 crore against ₹1,667 crore during the 2016-17. Revenue from operations for the year stood at ₹8,965 crore for the fiscal against ₹7,033 crore in the previous year.
The company that has earmarked a capacity expansion of ₹800 crore for the current financial year, has reported best-ever performance by its motorcycle business Royal Enfield during the fourth quarter.
The investment will go in all areas of its business, including second phase of the company’s third plant at Vallam Vadagal near Chennai.
Royal Enfield posted its highest ever quarterly revenue from operations at ₹2,528 crore for the fourth quarter, a growth of 34 per cent over the corresponding period last year.
The company sold 2,26,907 motorcycles during the quarter, a growth of 27 per cent over 1,78,345 bikes sold in the same period last year.
For 2017-18, it sold a total of 8,20,121 units, a growth of 23 per cent over 6,66,135 units in 2016-17.
“While we launched several relevant and differentiated variants, the highlight of the year was the unveiling of our first modern twin cylinder motorcycles - Interceptor 650 and the Continental GT 650,” Lal said.
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