Eicher Motors Ltd, which bets big on its Royal Enfield two-wheeler brand, has planned a capex of Rs 700 crore in FY 20, by expanding a factory and improving a technology centre in two places in Tamil Nadu besides launching new products.
Talking about the company reporting a 13 per cent decline in sales in the March quarter at 1,97,567 units, Eicher Motors managing director Siddhartha Lal said the industry is down.
He added that the company, after almost a decade of growth, will use the time to look at things afresh and reinvent itself.
Royal Enfield reported Rs 545 crore as Profit After Tax in the March quarter, compared to Rs 462 crore in the same period last year, which is an 18 per cent growth.
Total revenue from operations stood at Rs 2,500 crore, down 1 per cent as compared to Rs 2,528 crore in the same period last year. EBITDA was Rs 685 crore, down by 14% compared to Rs 797 crore.
The firm has almost completed building a plant in Vallam Vadagal near Chennai. Production will commence in the second half of this fiscal.
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