Eicher Motors (EICHERMOT) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 and H1 FY25 consolidated revenue of ₹4,263.07 crore, up 3.6% year-over-year, with EBITDA at ₹1,088 crore and profit after tax at ₹1,100.33 crore, reflecting 8.3% growth year-over-year.

• Royal Enfield sold nearly 225,000 motorcycles, maintained leadership in India's mid-size segment, and expanded globally with strong international retail growth of 12%.

• VECV posted record Q2 sales of 20,774 units, up 6.2% year-over-year, achieving highest-ever sales and market share in Light & Medium Duty trucks.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2024-25 were approved on November 13, 2024, with statutory auditor review yielding an unmodified conclusion.

• The business operates in a single segment: automobile products and related components.

Financial highlights

• Q2 FY25 consolidated revenue rose to ₹4,263.07 crore from ₹4,114.53 crore in Q2 last year; Q2 PAT increased to ₹1,100.33 crore from ₹1,016.25 crore year-over-year.

• EBITDA margin for Q2 was 25.5%, slightly down from 26.4% last year.

• VECV Q2 FY25 revenue grew to ₹5,538 crore, with EBITDA margin at 7.1% and PAT at ₹209 crore.

• One-off warehousing costs of ₹12 crore were incurred to support festive inventory build-up.

• Share of profit from joint venture (VE Commercial Vehicles Ltd) in Q2: ₹113.75 crore.

Outlook and guidance

• Management expects commercial vehicle demand to rebound in H2 FY25, supported by infrastructure investments.

• Focus on balancing ICE and EV product lines, with significant investment in EV R&D and infrastructure.

• Continued expansion in international markets and premium lifestyle segments.

• Sustainability targets include 80% emission intensity reduction per motorcycle by FY30.

• Sustained marketing and product interventions are expected to maintain retail momentum post-festive season.