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Hero MotoCorp Q1 results: Profit falls 95% to Rs 61 crore; revenue down 63%

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 108 crore in Q1FY21 as against Rs 1,158.1 crore in Q1FY20

twitter-logoBusinessToday.In | August 13, 2020 | Updated 22:22 IST
Hero MotoCorp Q1 results: Profit falls 95% to Rs 61 crore; revenue down 63%
Hero MotoCorp

Hero MotoCorp Limited on Thursday posted a 95.12 per cent fall in its standalone net profit for April-June quarter of financial year 2020-21 as against Rs 1,257.34 crore in the same quarter a year ago.The two-wheeler maker's revenue from operations fell 63 per cent to Rs 2,971.54 crore from 8,030.27 crore in the corresponding period of last fiscal.

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 108 crore in Q1FY21 as against Rs 1,158.1 crore in Q1FY20. EBITDA margin dropped to 3.6 per cen in the given quarter from Rs 14.4 per cent in Q1 of fiscal 2019-20.

"Delivering a positive bottom line, despite only 25 per cent capacity utilisation, reflects the resilience of the portfolio and ability to optimise costs and improve productivity," Hero MotoCorp said.

The company said that it sold 5.65 lakh two-wheelers in the quarter under review. It is 69.34 per cent down from 18.43 lakh a year ago.  "Hero MotoCorp was quick to begin work on cost control and efficiencies that enabled us to limit the impact of the unprecedented times during the first quarter of the financial year," said company CFO Niranjan Gupta.

"Cash conservation efforts and rationalisation of expenses, along with productivity enhancement measures, have helped us pass through the uncertain period as we now enter the phase of rapid recovery and return of demand," he added.

Hero MotoCorp ended the intraday trade on Thursday at Rs 2,811.25, up 37.35 points or 1.35 per cent, on NSE.

Also read: Hero MotoCorp sales fall 4% in July, surpass 5 lakh units

Also read: PM Modi announces Taxpayer's Charter; what is it?

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