Hero MotoCorp, the world's largest two-wheeler manufacturer, on Thursday reported 14 per cent year-on-year rise in its standalone profit at Rs 880.41 crore for the third quarter ended December 30, 2019. The auto major had posted a net profit of Rs 769.10 crore in the same quarter last year. The Hero MotoCorp board also announced an interim dividend of Rs 65 per share.
The company's revenue from operations for the quarter stood at Rs 6,997 crore as compared to Rs 7,865 crore in Q3 FY19. The Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) margin for the quarter stood at Rs 1,039 crore, reflecting 14.8 per cent EBITDA margin.
Hero's Profit Before Tax (PBT) stood at Rs 1,012 crore as compared to Rs 1,138 crore in Q3 FY19. On consolidated basis, the company's revenue and PAT stood at Rs 7,075 crore and Rs 905 crore, respectively for the quarter.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, "The two-wheeler industry continues to face challenges amidst an overall economic slowdown. Early indicators, such as a positive Rabi crop, augur well for the rural economy, which in turn is likely to help the industry."
He said the slew of measures announced by Finance Minister Nirmala Sitharaman as part of the Union Budget 2020 would also go a long way in reviving the economy. However, he said, it would take some time for the two-wheeler industry to see a sustained recovery. "We expect to see positive turnaround in the second half of the new fiscal (FY21)," he added.
In a filing to the bourses, Hero MotoCorp stated that it launched India's first BS-VI motorcycle Splendor iSmart in Q3 FY20, followed by the first BS-VI motorcycle in the entry segment-the HF-Deluxe. Hero Motocorp Ltd share closed 1.56 per cent up on Thursday (around 36.95 basis points) at Rs 2,411.9.