Image Source: Enrich Money
Eicher Motors Ltd, the parent company of Royal Enfield and a key player in India’s automotive sector, has reported robust financial results for the quarter ended March 31, 2025, while also declaring a substantial final dividend.
Strong Revenue Performance:
Consolidated revenue from operations for Q4 FY25 stood at ₹52.41 billion, surpassing the IBES estimate of ₹52.14 billion. This growth was fueled by a 24% year-on-year increase in sales volumes, reaching 2.82 lakh vehicles, and supported by price hikes and improved production efficiency.
Profit Beats Expectations:
The company posted a consolidated net profit of ₹13.62 billion, well above the IBES estimate of ₹12.68 billion. The profit surge reflects strong operational leverage and higher realizations, despite some pressure on margins due to increased marketing expenses and a less favorable product mix.
Dividend Announcement:
The Board of Directors has recommended a final dividend of ₹70 per share for FY25, marking a significant increase compared to previous years and rewarding shareholders for their continued support.
Operational Insights:
Eicher Motors benefited from better operating leverage and ongoing cost optimization, which helped offset rising input and marketing costs. The company’s focus on premiumization and new model launches also contributed to the quarter’s performance.
Market Reaction:
Shares of Eicher Motors traded positively following the results, reflecting investor confidence in the company’s growth trajectory and capital allocation strategy.
Outlook:
Management remains optimistic about sustaining growth, with plans to further expand its product portfolio and strengthen its presence in both domestic and international markets.
Eicher Motors’ Q4 results and record dividend underscore its leadership in the automotive sector and commitment to delivering value to shareholders.
Source: Moneycontrol, NDTV Profit, Financial Express
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