Eicher Motors Ltd. — Earnings Release 2019

Feb 11, 2019

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February 11, 2019

Online intimation/submission

The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, 5[th] Floor Dalal Street Plot No.C/1, G Block Mumbai-400 001 Bandra Kurla Complex, Bandra (E) Security Code: 505200 Mumbai-400 051 Symbol: EICHERMOT

Dear Sir/ Madam

Ref: Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015

Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, please find attached copy of press release being issued today.

Thanking you, For Eicher Motors Limited

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Manhar Kapoor General Counsel & Company Secretary

Encl.: As above

[Type text]

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For Immediate Release:

Eicher Motors Limited announces its financial results for the quarter ended December 31st, 2018

~ For the quarter ended December 31, 2018, Eicher Motors Limited recorded total revenue from operations at Rs. 2,341 crores, EBITDA at Rs. 680 crores and Net Profit After Tax at Rs.533

crores ~

New Delhi, February 11, 2019: Eicher Motors Limited (EML) today announced its unaudited consolidated financial results for the quarter ended 31st December, 2018.

In the quarter ended December 2018, Royal Enfield’s total revenue from operations rose 3% to Rs. 2,341 crore , compared to Rs. 2,269 crores in the same period last year; EBITDA was Rs. 680 crores, down by 4% compared to Rs 707 crores in the same period last year; Profit After Tax grew by 2% to Rs. 533 crores from Rs. 521 crores in the same period last year. Royal Enfield sold 193,871 motorcycles in the quarter, registering a decline of 6% from 202,736 motorcycles sold in the same period last year.

Commenting on Royal Enfield’s performance, Siddhartha Lal, Managing Director and CEO Eicher Motors Ltd, said, “The latter half of 2018 was a challenging period for the two-wheeler industry in India. Factors like increased insurance requirements, rising raw material costs and the subsequent price increase due to regulatory safety requirements impacted the momentum of the industry. Royal Enfield’s market share recorded improvement on a sequential basis, while volumes in the quarter were impacted. We believe this is a temporary impact due to a price reset. We continue to remain optimistic about the trend of premiumization in the motorcycling industry, and are confident that this trend will continue in the future.”

The third quarter was very exciting for Royal Enfield as the 650 Twin motorcycles - the Interceptor 650 and the Continental GT 650 motorcycles were launched in India and other key markets across the globe. The India launch in November was timed along with Rider Mania - Royal Enfield’s biggest annual festival held on Goa - where the Royal Enfield community and motorcycling enthusiasts got an opportunity to be the first ones to test ride the Twin motorcycles. During the quarter, the 650 Twins were also launched in the UK and Europe at the EICMA Motorcycle Show in Milan, Italy and also in Thailand, Indonesia, Brazil, Colombia and Australia. While retail sales have already begun in India, deliveries the global markets are expected to begin soon.

“The Interceptor 650 and Continental GT 650 have been loved for their classic styling, simple design and being fun to ride. Consumer response from our test ride experience zones at EICMA 2018, and at Rider Mania has been phenomenal. The ‘Indian Motorcycle of The Year’ 2019 award for the Interceptor reiterates this consumer response and is a testament of our development and design efforts on these motorcycles. The initial enthusiasm from markets has been very encouraging, and we strongly believe that these modern classics will be an attractive and evocative option for motorcycle lovers everywhere” added Siddhartha

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In the Commercial Vehicles (CV) segment, VE Commercial Vehicles (VECV) - Eicher’s joint-venture with AB Volvo - was affected by the industry slowdown especially in Heavy Duty (HD) segment. VECV’s revenue from operations rose by 9% to Rs. 2,818 crores from Rs. 2,590 crores in the same period last year; EBITDA declined by 18% to Rs. 186 crores from Rs. 226 crores in the same period last year; Profit After Tax declined by 43% to Rs. 76 crores from Rs. 133 crores last year.

VECV sold 16,936 trucks and buses in the quarter, growing 4% over the same period last year. VECV’s performance in the LMD segment continued to be in line with the industry registering 9% growth on a year-on-year basis. In the HD segment, the VECV recorded a growth of 4% while industry declined by 13% year-on-year. During the quarter, certain non-banking financial companies (NBFCs) scaled back their lending activities affecting sales. The trend of heavy discounting continues in the CV industry despite the sustained demand.

Speaking on VECV’s performance Siddhartha said “While the demand momentum continues in the CV industry, sales were affected especially in HD segment due to change in axle load norms and liquidity crunch. However, in Q3 2019, VECV increased its market share in HD Trucks through focused market penetration and strengthening the product portfolio with new launches of our modernised ‘Value Trucks’ over the past year. We continue to believe that we can be the catalyst that drives modernisation of commercial transportation in India and other developing markets.”

View the Eicher Motors Ltd Q3 2019 Results Microsite (To go live at 04:00 PM - February 11, 2019)

About Eicher Motors Limited:

Eicher Motors Limited (EML) (Bloomberg: EIM IN Reuters: EICH.NS ) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focussed on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 40 countries around the world. With modern development facilities in Leicestershire, UK and Chennai, India, Royal Enfield makes its motorcycles in Tamil Nadu for the world. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - VE Commercial Vehicles Limited (VECV) which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has complete range of trucks and buses from 5-49 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group. For the twelve months ended March 2018, Eicher Motors recorded its highest ever total income of INR 8,965 crores (net of excise duty) which is approximately USD 1.4 billion. EML is listed on the Bombay and National Stock Exchanges. As of April 1st 2016, Eicher Motors Limited became a part of the Nifty 50 Index. Please visit our website: www.eichermotors.com

Disclaimer:

All statements included or incorporated by reference in this media release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Although EML believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and EML undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

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Corporate Communications: Swati Sundareswaran; swati@royalenfield.com Shreyas Bhatt; shreyas@eichermotors.com