Eicher Motors Limited — Q1 FY25
Eicher Motors reported its highest-ever quarterly revenue of INR 4,393 crore (+10.2% YoY) and EBITDA of INR 1,165 crore (+14.1% YoY), with margins expanding 90bps to 26.5%.
bullish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Why is premium motorcycle category not growing despite premiumization trend?
Asked by Pramod Kumar
Acknowledged slow growth but attributed to vague 'confusion' without concrete data.
no specific reason givenattributed to confusion settling
Read the exchange
Question
what we're seeing is in a very broad-based premiumization trend across industries and sectors in India, for some reason, the premium motorcycle category, as the way you define it, above 250, is not seeing much of a thrust as such... what explains this phenomenon?
B. Govindarajan, CEO, Royal Enfield
the middleweight, the entire motorcycle, which has seen only almost about 4-4.5% of growth over the first quarter of FY 2024... it's a period of the whole confusion settling... I'm very positive it will start picking up in few months time
Evasive
Medium priority
Any plans to introduce Guerrilla as trial product for existing riding groups?
Asked by Pramod Kumar
Did not confirm any specific trial program, only general community engagement.
no specific plan givenvague commitment
Read the exchange
Question
any plans for introducing Guerrilla as a trial product for a lot of your existing riding groups... because that's a very big untapped customer base we have of several million of them
B. Govindarajan, CEO, Royal Enfield
community connect and making community to enjoy our motorcycles, we always try to find very innovative ways of reaching out to them... one as such action is also reaching out to them and trying to get them onto the saddle of Guerrilla
Partial answer
High priority
What are booking numbers or potential volumes for Guerrilla?
Asked by Pramod Kumar
Gave combined platform volume but not separate Guerrilla bookings or potential.
combined platform numbers, not Guerrilla specific
Read the exchange
Question
Any booking numbers you're seeing, Govind, on this? Or potential volumes, what you can do once ramp up is done, across domestic export?
B. Govindarajan, CEO, Royal Enfield
K Platform as a whole... it is almost about 8,000 to 8,500 numbers per month is what we are clocking... Guerrilla is on the ramp up... already we shipped almost 6,000 across India and international
Answered
Medium priority
Is the 25% tax rate for VECV structural going forward?
Asked by Chandramouli
Simple affirmative answer to a yes/no question.
Read the exchange
Question
you said that there is a write back in the deferred tax... would it mean that the tax rates on VECV will perpetually be assumed at 25% going forward?
B. Govindarajan, CEO, Royal Enfield
Yes.
Partial answer
Medium priority
How are you thinking about production capacity for Guerrilla?
Asked by Chandramouli
Gave general capacity but no specific plan for Guerrilla ramp-up.
no specific capacity plan for Guerrilla
Read the exchange
Question
just trying to understand how you're thinking about production capacity, in your, you know, current 1.2 million units annual capacity that you have just for, you know, these two products
B. Govindarajan, CEO, Royal Enfield
overall capacity is 1.2 million... we are not a company wherein we'll put the capital in and wait for it... we will, we can and we will comfortably supply the K Platform also according to the market demand in next 1 or 2 months' time
Partial answer
High priority
Are export markets turning a corner with new models?
Asked by Chandramouli
Acknowledged improvement but remained cautious, not a definitive turn.
no clear yes/nocautious language
Read the exchange
Question
This seems to be the first quarter of wholesale growth in exports over the past 5 quarters. Would you say that the export markets are now turning a corner for us?
B. Govindarajan, CEO, Royal Enfield
exports, there is even still... the sentiments are not the way we are expecting... I do see, green shoots in the international markets... we are cautiously optimistic
Evasive
High priority
What are the changes expected in the new Classic 2024?
Asked by Arvind Sharma
Refused to share any details, only teased future announcements.
no specificsdeferred to future announcement
Read the exchange
Question
could you share some highlights with us? Is it just cosmetic changes, or what are the kind of changes that we expect from the new model year version?
B. Govindarajan, CEO, Royal Enfield
we are working on very exciting updates, collaborations... you will see all those things getting announced, a very, within a short span of time
Partial answer
Medium priority
Will Hunter action be marketing/pricing driven or product update?
Asked by Arvind Sharma
Mentioned both marketing and product work but no specifics on product changes.
no specific product update details
Read the exchange
Question
Will it be primarily marketing and pricing driven? Or, in the Hunter also, you are planning some update to the product?
B. Govindarajan, CEO, Royal Enfield
there will be a lot of marketing activation activities... we are constantly working on the product also... you will see something or other, which is happening even in the Hunter
Declined
High priority
Any other product launches planned in next 6-12 months?
Asked by Arvind Sharma
Explicitly declined to answer the question.
refused to answer
Read the exchange
Question
Apart from the product revamp in Classic, is there any other product that you plan to launch over the next, say, six months to a year? Any white spaces that you've identified and you want to fill that up?
B. Govindarajan, CEO, Royal Enfield
I'll come back to you, Arvind.
Evasive
High priority
How should product portfolio change for double-digit growth in 2-3 years?
Asked by Gunjan
Did not address portfolio changes, only discussed brand building.
no portfolio roadmapvague brand building talk
Read the exchange
Question
how do you get the customer to convert?... what is it beyond these refreshes that we are looking at over the next... 2-3-year perspective, how should the product portfolio change so that we can be very confident about double-digit growth?
B. Govindarajan, CEO, Royal Enfield
it's a brand building exercise one have to do... the belief is that this product... has landed... it is showing signs
Answered
Medium priority
What drove ASP improvement and commodity impact?
Asked by Kapil Singh
Provided specific drivers and quantified commodity impact.
Read the exchange
Question
We saw very good improvement in the average selling prices. So if you could share some color there, that, was it driven purely by mix, or you're seeing higher growth in spare parts and accessories?
Vidhya Srinivasan, CFO, Eicher Motors Limited
the growth in selling price is a function of 2, 3 things. One is product mix... increase in the share of international markets... we've got impact of about 0.6% as far as commodity is concerned
Partial answer
High priority
Why are volumes low despite similar conditions last year?
Asked by Prashant
Reiterated confusion narrative without addressing why last year was different.
repeated earlier explanationno new data
Read the exchange
Question
if I were to kind of think about, like, what was happening a similar time last year when there were actually launches happening... even then, our volumes were not kind of flat, like what we have seen now. So, I'm not able to fully appreciate the rationale that you are giving for these low volumes
B. Govindarajan, CEO, Royal Enfield
it's a period of the whole confusion settling... everybody was actually given lot many options directly against Royal Enfield... that has, I would say it is, it's a deterrent in the decision making
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Middleweight motorcycle grew 4-4.5% in Q1 FY25 | 4.5% | 10.2% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.