Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, on Thursday reported a decline of 36.7 per cent in its net profit at Rs 686 crore in the quarter ending 31 December, 2021. The automaker had posted a net profit of Rs 1,084 crore in the year-ago period.
The company's revenue from operations for the quarter fell 19 per cent to Rs 7,883 crore as asgainst Rs 9,776 crore in the same quarter last fiscal. However, parts business continued to do very well at Rs 1,186 crore with growth of 15 per cent, the company said in a statement.
Further, the EBITDA margin for the third quarter was at 12.2%.
The company declared interim dividend of Rs 60 per share (face value of Rs. 2 per equity share) for the financial year 2021-22 amounting to 3000%.
The board has fixed February 22, 2022 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, 2022.
"The company continues to progress on the launch of its Electric Vehicle (EV), which will be produced at the company’s manufacturing facility at Chittoor in the southern state of 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," the automaker further stated.
Sustainability and Emerging Mobility is a priority area for Hero MotoCorp and the company continues to enhance its efforts in this direction, it added.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, 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 programs combined with judicious price increases have helped cushion the
impact on customers as well as margins."
He also added that with rapid easing of 3rd wave, and full re-opening of all the sectors of the economy in coming weeks, including the hospitality sector, education sector etc., the company expect a much broader economic recovery and increase in consumer confidence.
"The recently announced Union Budget, with its focus on growth through increased capital expenditure, as well as continued support to rural and MSME sector augurs well for FY '23 demand scenario in general and two-wheeler industry in particular. 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.”
Shares of Hero MotoCorp on Thursday closed flat at Rs 2,730 apiece on BSE.
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