Country’s largest two-wheeler maker Hero MotoCorp on Thursday reported a consolidated net profit of ₹704 crore for the third quarter ended December, 2021, a decline of around 32 per cent year-on-year (YoY) as compared with ₹1,029 crore in corresponding period previous year.
The total income of the company also declined by 19 per cent YoY to ₹8,133 crore for the October-December quarter as against ₹10,033 crore in the same period in 2020.
The company meanwhile has announced for an interim dividend at 3,000 per cent -- ₹60 per equity share (face value of ₹2 per equity share) for the financial year 2021-22.
“Accordingly, the Board has fixed February 22, as record date for determining entitlement of members for the purpose of payment of interim dividend. The payment of interim dividend/ dispatch of dividend warrants will be completed by March 12,” Hero MotoCorp said in a statement.
The company sold 12.92 lakh units of motorcycles and scooters sold in the third quarter and within this, Global Business sold 61,000 units – a growth of around 16 per cent, it said.
The company also has indicated of further price increase in future due the cost pressure from various materials.
“Commodity cost pressures are expected to ease, as supply imbalances get corrected gradually, some part of which is evident in the softening of precious metal and steel prices. We will continue to accelerate our savings programme, premiumise within the brands, and take price increases where necessary,” Niranjan Gupta, Chief Financial Officer, Hero MotoCorp, said.
With rapid easing of third wave, and full re-opening of all the sectors of the economy in coming weeks, including the hospitality sector, education sector, the company expects a much broader economic recovery and increase in consumer confidence, he said.
“The current fiscal has seen the domestic two-wheeler industry impacted by twin challenge of softer demand due to pandemic and margin squeeze due to sharp commodity cost inflation. Our continued focus on savings programmes combined with judicious price increases have helped cushion the impact on customers as well as margins,” Gupta added.
EV, a priority
The company continues to progress on the launch of its electric vehicle, which will be produced at the company’s manufacturing facility at Chittoor in Andhra Pradesh. Through its investments and partnerships like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem – from product to technology, to sales service, customer care, operations and innovation, it said.
Sustainability and emerging mobility is a priority area for Hero MotoCorp and the company continues to enhance its efforts in this direction, it added.
Shares of Hero MotoCorp closed at ₹2,733.95 a piece on the BSE on Thursday, up 0.21 per cent from the previous close.