Eicher Motors sets aside capex of ₹2,200 cr. for FY25
Eicher Motors Ltd. (EML) has set aside a capex of ₹1,200 crore for Royal Eneld and ₹1,000 crore for VE Commercial Vehicles (VECV), for the current scal year, top company executives said on Saturday.
“For the current scal, we have set aside a capex of ₹1,200 crore mainly for development of new products including electric vehicles and international growth,” said Royal Eneld CEO B. Govindarajan. “This will be nanced through internal accruals and debt,” he said during an interaction.
The CEO also said that the company was making substantial progress in development of electric motorcycles that would be unveiled during FY25. Besides, Royal Eneld will be rolling out one or two products in all the platforms, he said.
According to Mr. Govindarajan, Royal Eneld has expanded its international footprint by setting up its fth completely knocked down (CKD) assembly unit outside India in Nepal, while the next one will come up in Bangladesh.
Besides, it has made a debut in Turkey and established a wholly owned subsidiary in the Netherlands to cater to evolving consumers in the European Union (EU).
Q4 pro t rises 18%
EML’s consolidated net prot for the quarter ended March rose 18% YoY to ₹1,070 crore on higher sales volume. Revenue from operations rose 12% to ₹4,256 crore.
The company sold 2.28 lakh motorcycles against 2.15 lakh in the year-earlier period. Mr. Govindarajan said that FY24 saw EML’s best ever performance. It also surpassed pre-COVID levels of growth.
VECV’s net prot contracted to ₹242 crore from ₹315 crore, while total revenue increased by ₹275 crore to ₹6,275 crore. The board declared a nal dividend of ₹51 per share.
“We had a remarkable year at EML and have reported exceptional performance across both Royal Eneld and VE Commercial Vehicles,” EML MD & CEO Siddhartha Lal said at a press meet.
Asked about EVs, Mr. Lal said that as far as VECV was concerned, it had commenced sales of EV trucks and had the global unveiling of the new electric-rst small commercial vehicle. VECV MD & CEO Vinod Aggarwal said the electric small commercial vehicle showcased at Bharat Mobility Global Expo “will mark a new growth segment for VECV in the 2.5-3.5 tonne category.”