180 Per Cent Returns: Leading Automobile Manufacturer Delivers 17.5 Per Cent PAT Growth; Stock Down 6.7 Per Cent
The company’s consolidated net profit rose 17.5 per cent YoY to Rs 1,170.50 crore, up from Rs 995.97 crore in Q3 FY24.
Eicher Motors Limited reported strong earnings for Q3 FY25, with double-digit growth in net profit and revenue. However, despite the solid performance, the stock declined 6.7 per cent after the results. Despite strong earnings, Eicher Motors’ stock fell 6.7 per cent, closing at Rs 4,977.95 post-results.
Financial Performance
The company’s consolidated net profit rose 17.5 per cent YoY to Rs 1,170.50 crore, up from Rs 995.97 crore in Q3 FY24. Revenue from operations grew 18.8 per cent YoY, reaching Rs 4,888.11 crore.
EBITDA stood at Rs 1,201 crore, marking a 10 per cent YoY increase from Rs 1,090 crore in the year-ago period. However, the EBITDA margin declined to 24.2 per cent, compared to 26.1 per cent in Q3 FY24.
Profit before tax (PBT) saw a 12.6 per cent YoY increase, reaching Rs 1,460.82 crore during the quarter.
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Segment Performance
- Royal Enfield: Sales volume grew 17 per cent, with 269,039 motorcycles sold, compared to 229,214 units in Q3 FY24.
- VE Commercial Vehicles (VECV): Revenue increased 6 per cent YoY to Rs 5,801 crore, while vehicle sales rose 1.48 per cent YoY to 21,012 units.
Stock Price Performance
Over the past year, the Eicher Motors’ stock has gained 28.49 per cent, significantly outperforming the Nifty 50, which rose 5.83 per cent. The company has delivered 180 per cent returns over the past five years. Eicher Motors currently holds a market capitalization of Rs 1,46,098 crore.
About the Company
Incorporated in 1982, Eicher Motors Limited is a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. The company operates Volvo Eicher Commercial Vehicles Limited (VECV), a joint venture with Sweden’s AB Volvo, focusing on trucks, buses, auto components, and technical consulting services.
Disclaimer: This article is for informational purposes only and not investment advice.