Eicher Motors reports 34% jump in net profit at Rs 996 crore during Q3FY24

Eicher Motors Limited on Tuesday reported a consolidated net profit of Rs 996 crore during Q3 FY24, a jump of 34% when compared with Rs 741 crore in Q3 FY23. The company's revenue from operations stood at its highest ever at Rs 4,179 crore during Q3 FY24, up 12% as against a similar period last year when it was Rs 3,721 crore.

In terms of EBITDA, Eicher Motors reported it was Rs 1,090 crore in Q3 FY24, up 27% compared to Rs 857 crore in the same quarter of the previous financial year, the company said in a regulatory filing.

Siddhartha Lal, Managing Director, Eicher Motors Ltd, said, “It has been a good quarter for us at Eicher Motors, as we recorded solid business and financial performance across the board."

Commenting on the company's commercial vehicles business, Lal stated that VE Commercials Vehicles, recorded its best third quarter ever, with strong sales and improved market share across all business segments.

Eicher Trucks and Buses, a division of Volvo Eicher Commercial Vehicles (VECV), is making a strategic move into the small commercial vehicle (SCV) segment, aiming to capitalise on its robust growth potential. Unveiled at the recently concluded Bharat Mobility Global Expo 2024, the company's entry into this space comes at a time when the overall small commercial vehicle segment is experiencing a relative slowdown in light of the high base of the previous fiscal.

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Eicher’s SCV vehicle is scheduled for customer trials in April 2024, with a commercial rollout expected in the first quarter of 2025. The company will be introducing the electric variant first, progressively moving towards clean CNG and diesel variants.

Commenting on the quarter, Vinod Aggarwal, MD and CEO, VE Commercial Vehicles, said, “VECV delivered a strong performance in the quarter, with market share gains across business segments. We recorded our highest ever Q3 sales at 20,706 units. As of December 2023, YTD sales reached 59,828 units, marking a 12.4% increase from the previous year’s 53,247 units. During the quarter, we also began deliveries of India’s first electric 5.5 T truck and continued delivering electric buses to customers across the country."

Future outlook and growth prospects

Eicher Motors, one of India's leading automobile companies, has recently reported a remarkable surge in net profit for the third quarter of FY24. With a staggering 34% increase, the net profit reached an impressive Rs 996 crore, showcasing the company's robust performance and resilience in a competitive market.

Looking ahead, Eicher Motors has promising growth prospects. The company has been consistently investing in research and development, focusing on innovation and technology advancements to cater to evolving customer demands. This forward-thinking approach positions Eicher Motors to capitalize on emerging trends and stay ahead of the curve.

Eicher Motors also plans to expand its presence in untapped markets, both within India and globally. With strategic investments in production capacity and distribution networks, the company aims to reach new customers and enhance its market share. Additionally, Eicher Motors is actively exploring opportunities in electric mobility, aligning with the industry's shift towards sustainable transportation solutions.