Q2 2025 Eicher Motors Ltd Earnings Call Transcript
Key Points
- Eicher Motors Ltd (BOM:505200) reported its best-ever quarterly revenue of INR 4,263 crore, marking a growth of 3.6% over the previous year.
- Royal Enfield achieved a significant milestone with its best-ever monthly sales performance, exceeding 100,000 units in October.
- The company launched several new products, including the Guerrilla 450 and the Classic 650, which received positive market reception.
- VECV recorded its highest-ever second-quarter sales of 20,774 units, despite a challenging market environment.
- Eicher Motors Ltd (BOM:505200) is expanding its international presence with new facilities in Bangladesh and Brazil, indicating strong growth potential in these markets.
- EBITDA margins slightly decreased to 25.5% from 26.4% in the previous year, indicating pressure on profitability.
- The company faced increased other expenses due to new product launches and warehousing costs, impacting overall margins.
- VECV's margins remain under pressure despite sales growth, with a decline in EBITDA margins from 7.8% to 7.1%.
- There is a cautious approach towards inventory build-up in international markets due to upcoming regulatory changes, which may affect sales momentum.
- The company is focusing more on growth rather than margin improvement, which could impact profitability in the short term.
Ladies and gentlemen, good day, and welcome to the Eicher Motors Limited Q2 FY 2025 earnings conference call hosted by a Avendus Spark. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference call is being recorded.
I now hand the conference over to Mr. Mukesh Saraf from a Avendus Spark. Thank you and over to you, sir.
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Thank you, [Farah]. Good evening, everyone. Welcome to this 2Q FY25 post results conference call of Eicher Motors. From the management team, we have customer in the Mr. Vinod Aggarwal, MD and CEO of Commercial Vehicles; Mr. B. Govindarajan, CEO of Royal Enfield; and Ms. Vidhya Srinivasan, Chief Financial
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