Eicher Motors Ltd Posts Impressive Q3 FY24 Results: Consolidated Net Profit Jumps 34%

VE Commercial Vehicles achieved its best third quarter ever, with strong sales and improved market share across all business segments.

Eicher Motors Limited, one of India's leading automotive manufacturers, has announced its financial results for the third quarter of the fiscal year 2023-24, showcasing robust growth and record-breaking figures. According to a regulatory filing, the company reported a consolidated net profit of Rs 996 crore during Q3 FY24, marking a significant surge of 34% compared to Rs 741 crore in the same quarter of the previous fiscal year.

The company's excellent performance was further strengthened by its highest-ever operating revenue of Rs 4,179 crore in the third quarter of FY24. This represents a notable increase of 12% compared to the corresponding period in FY23 when it stood at Rs 3,721 crore.

Eicher Motors also reported a substantial improvement in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which stood at Rs 1,090 crore in Q3 FY24. This figure reflects a robust growth of 27% compared to Rs 857 crore reported in the same quarter of the previous financial year.

Siddhartha Lal, the Managing Director of Eicher Motors Ltd, expressed satisfaction with the company's performance, stating, "It has been a good quarter for us at Eicher Motors, as we recorded solid business and financial performance across the board." Lal's remarks highlight the company's confidence in its operational strategies and market positioning.

Furthermore, commenting on the commercial vehicles segment, Lal highlighted the impressive performance of VE Commercial Vehicles, a subsidiary of Eicher Motors. He stated that VE Commercial Vehicles achieved its best third quarter ever, with strong sales and improved market share across all business segments. This achievement signifies the effectiveness of the company's initiatives in capitalising on market opportunities and enhancing its competitive standing.

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Eicher Motors' robust financial performance in Q3 FY24 highlights its resilience and ability to navigate challenges while capitalising on growth opportunities in the automotive sector. The company's strategic initiatives, coupled with its strong operational performance, position it favourably for continued success in the future.

Eicher Trucks and Buses, a division of Volvo Eicher Commercial Vehicles (VECV), has announced its strategic move into the small commercial vehicle (SCV) segment, aiming to capitalize on its robust growth potential. The unveiling took place at the recently concluded Bharat Mobility Global Expo 2024.

The company's entry into the SCV segment comes at a time when the overall small commercial vehicle segment is experiencing a relative slowdown due to the high base of the previous fiscal year.

Eicher’s SCV vehicle is set for customer trials in April 2024, with a commercial rollout expected in the first quarter of 2025. The company plans to introduce the electric variant first, gradually expanding to include clean CNG and diesel variants.

Commenting on the performance, Vinod Aggarwal, MD and CEO of VE Commercial Vehicles, highlighted a strong quarter for VECV, with market share gains across business segments. Q3 sales reached a record high of 20,706 units, and year-to-date (YTD) sales as of December 2023 stood at 59,828 units, reflecting a 12.4% increase compared to the previous year's 53,247 units.

Aggarwal also noted significant milestones in the electric vehicle (EV) space, including the commencement of deliveries for India’s first electric 5.5 T truck and continued deliveries of electric buses to customers across the country.