CHENNAI: Eicher Motors is lining up a combined capex of around Rs 1,600-1,700 crore for financial year 2023-24. According to top management of the company, this will include a Rs 1,000 crore capex spend for Royal Enfield and another Rs 600-700 crore spend for Volvo Eicher Commercial Vehicles.
“Last year we had lined up Rs 650 crore capex for Royal Enfield and this year it has been enhanced to Rs 1,000 crore and the bulk of the additional amount will be spent on our electric vehicle programme,” said Royal Enfield CEO B Govindarajan.
Royal Enfield’s EV programme is still around two years away from market launch but the company is in execution mode putting in place a team on both the engineering and commercial side as well as building both an electric Royal Enfield product and an electric mobility business, he added.
EML clocked its fourth consecutive quarter of best performance, clocking an all-time quarterly high consolidated net profit of Rs 918 crore, up 50% year-on-year. This came on the back of an all-time best quarterly revenue of Rs 3,986 crore, up 17% year-on-year while Ebitda was at Rs 1,021 core, up 23%. Operating margins were at 25.6% compared to 24.5% last Q1. Combined EML and VECV revenue hit $1 billion at around Rs 9,000 crore in the first quarter.
Meanwhile, EML MD Siddhartha Lal responded to competition from Indian moto-biggies like Hero Motocorp and Bajaj saying that Royal Enfield is focussed on “the consumer not the competition”. He added that Royal Enfield is “no stranger to competition though competition hasn’t fared too well in our segment.” With new products and brands, the segment, he added, will grow and “as market leaders we will grow further” he said.
“Last year we had lined up Rs 650 crore capex for Royal Enfield and this year it has been enhanced to Rs 1,000 crore and the bulk of the additional amount will be spent on our electric vehicle programme,” said Royal Enfield CEO B Govindarajan.
Royal Enfield’s EV programme is still around two years away from market launch but the company is in execution mode putting in place a team on both the engineering and commercial side as well as building both an electric Royal Enfield product and an electric mobility business, he added.
EML clocked its fourth consecutive quarter of best performance, clocking an all-time quarterly high consolidated net profit of Rs 918 crore, up 50% year-on-year. This came on the back of an all-time best quarterly revenue of Rs 3,986 crore, up 17% year-on-year while Ebitda was at Rs 1,021 core, up 23%. Operating margins were at 25.6% compared to 24.5% last Q1. Combined EML and VECV revenue hit $1 billion at around Rs 9,000 crore in the first quarter.
Meanwhile, EML MD Siddhartha Lal responded to competition from Indian moto-biggies like Hero Motocorp and Bajaj saying that Royal Enfield is focussed on “the consumer not the competition”. He added that Royal Enfield is “no stranger to competition though competition hasn’t fared too well in our segment.” With new products and brands, the segment, he added, will grow and “as market leaders we will grow further” he said.
