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The country’s largest two-wheeler manufacturer Hero MotoCorp on Thursday reported a net profit of ₹249 crore for the first quarter ended June 30, a sequential decline of 72 per cent over net profit of ₹885 crore recorded during the fourth quarter of the last financial year.
Revenue from operations also declined by 37 per cent quarter-on-quarter (Q-o-Q) at ₹5,503 crore as against ₹8,690 crore in the previous quarter.
Lockdown impact
The company’s operations and financial results were partially impacted by the lockdown announced by various State governments during the quarter.
On May 6, the Board of directors had recommended a final dividend of ₹35 per equity share (face value of ₹2 per share) for the financial year ended March 31, which together with the interim dividend of ₹70 per share, has been approved by the shareholders in the annual general meeting held on August 4, the company said in a statement.
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On year-on-year (y-o-y) basis, the company reported net profit growth of 370 per cent as against ₹53 crore in a year ago period. Similarly, revenue also grew by 85 per cent y-o-y(against ₹2,969 crore) basis. The company said it sold 10.25 lakh units of motorcycles and scooters during the first quarter, which is decline of 35 per cent on Q-o-Q basis as compared with 15.68 lakh units in January-March quarter this year.
However, on y-o-y basis there is a growth of 81 per cent over the corresponding quarter (April-June) in the previous fiscal. “The first quarter of this fiscal has been adversely impacted by Covid-19. Despite the challenges, Hero MotoCorp achieved significant growth in both earnings and profitability compared to the corresponding quarter of the previous fiscal. The company improved its market share in the quarter by more than 200 bps over the full year of fiscal year 2021,” Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said.
Also read: Two-wheeler sales grow marginally in July
He said the commodity costs continued to rise, thereby impacting the industry margins adding that the company has taken judicious and measured pricing decisions, reducing the impact on the customers by offsetting part of the increase through the accelerated Leap-2 saving programme.
Shares of Hero MotoCorp closed at ₹2,782.65 apiece on the BSE on Thursday, down 0.17 per cent from the previous close.
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