Eicher Motors, the parent company of Royal Enfield, saw its shares surge by 7% in a weak market on the back of strong Q4 performance. The company reported a net profit of Rs 526 crore for the quarter ended March 31, 2021, up from Rs 146 crore in the same period last year. The robust performance was driven by strong demand for Royal Enfield motorcycles in both domestic and international markets.
The company’s total revenue from operations for Q4 2021 was Rs 2,940 crore, up 33% from the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at Rs 833 crore, up from Rs 190 crore in Q4 2020.
The strong performance of Eicher Motors in a weak market is being attributed to the company’s focus on innovation and product development. The company has been investing heavily in research and development, and has launched several new models of Royal Enfield motorcycles in the past year.
The company’s management has expressed confidence in the long-term growth prospects of the business, and has said that it will continue to invest in product development and innovation. The strong Q4 performance is seen as a validation of this strategy, and has boosted investor confidence in the company.
In conclusion, the strong Q4 performance of Eicher Motors, driven by strong demand for Royal Enfield motorcycles, has led to a surge in the company’s share price in a weak market. The company’s focus on innovation and product development is seen as a key driver of its growth, and its management has expressed confidence in the long-term prospects of the business.
