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Hero MotoCorp Q4 net down 30 per cent to ₹620 crore

BL New Delhi Bureau | Updated on: May 03, 2022

Hero MotoCorp’s sales had declined 24 per cent in Q4; declares ₹35 per share final dividend

Hero MotoCorp on Tuesday reported a consolidated net profit of ₹620 crore for the fourth quarter ended March 31, declining by 30 per cent year-on-year (YoY) compared to ₹885 crore in the corresponding period last year.

The consolidated revenue from operations declined by 13 per cent YoY to ₹7,496 crore in the January-March quarter as against ₹8,670 crore in the same period last year.

The company’s board has declared a final dividend at 1750 per cent -- ₹35 per share (face value of ₹2 per equity share). With this announcement , together with the Interim dividend, aggregates to ₹95 per equity share at 4,750, the company said.

Decline in sales

The company said it sold a total of 11.9 lakh units of motorcycles and scooters during the quarter in review, a decline of 24 per cent as compared with 15.68 lakh units in the corresponding period last year.

“With the economy picking up, we expect the demand for motorcycles and scooters to see a positive turnaround in the coming months. While concerns related to high input costs continue to remain a challenge, we will keep monitoring the situation and take judicious measures as appropriate,” Niranjan Gupta, Chief Financial Officer, Hero MotoCorp, said.

The forecast of a normal monsoon is likely to aid the crops, which is expected to improve cash flows in the rural sector. All these factors are likely to help in a steady recovery in consumer sentiments and market demand, he said.

Lining up of new launches

“In the fiscal year 2022-23, we have lined up multiple product launches in different segments with an aim to continue building our premium portfolio as well as premiumisation of existing models, which will help us deliver growth and profitability,” he said.

In the coming months, the company will be able to drive profitable growth by combining key strategic initiatives such as acceleration of the Leap-II savings programme to offset the higher commodity prices and input costs and cash flow management, Gupta added.

Appointments

Meanwhile, the company said Vikram Kasbekar has been re-appointed as Whole-time Director, designated as Executive Director – Operations (Plants), for a term of two years with effect from August 8 up to August 7, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting of the company.

Kasbekar is not debarred from holding the office of Director under any order of SEBI or any other such authority, and he is not disqualified from being re-appointed as Whole-time Director, it said.

Published on May 03, 2022
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