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Hero MotoCorp FY20 revenue drops 16.6% to Rs 28,836, profit rises 6.8%

Hero MotoCorp's profit after tax for January-March quarter dropped 26.46 per cent to Rs 621 crore vs Rs 730 crore in Q4 FY19, while revenue fell to Rs 6,238 crore compared to Rs 7,885 crore in Q4 FY19

twitter-logoBusinessToday.In | June 10, 2020 | Updated 09:18 IST
Hero MotoCorp FY20 revenue drops 16.6% to Rs 28,836, profit rises 6.8%
Hero MotoCorp sold 63.98 lakh two-wheelers in FY20

Hero MotoCorp, the world's largest manufacturer of scooters and motorcycles, posted a 6.8 per cent rise in its financial year 2019-20 profit at Rs 3,633 crore as compared to Rs 3,385 in FY19. The company sold 63.98 lakh two-wheelers in FY20, and its overall revenue from operation stood at Rs 28,836 crore compared to Rs 33,651 crore in FY19, recording a 16.6 per cent decline.

The company's profit after tax (PAT) for the January-March quarter dropped 26.46 per cent to Rs 621 crore vs Rs 730 crore in Q4 FY19, while revenue fell to Rs 6,238 crore compared to Rs 7,885 crore in Q4 FY19. The company's EBITDA margin for the quarter stood at 10.6%.

"Revenue and EBITDA for the quarter was impacted due to lockdown and one-off items. Excluding the same, revenue would have been Rs 7,403 crore, at an underlying EBITDA margin of 13.5%. Consolidated revenue and PAT stood at Rs 6,334 crore and Rs 614 cr, respectively, for the quarter," the company said in a statement. The company also declared a final dividend of Rs 25 per share, which together with the interim dividend of Rs 65 per share, aggregates to Rs 90 per share.

Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp said: "As we march towards rapid recovery from lockdown, we have taken several measures towards saving cost, improve the productivity of spends, and conserve cash. We have rationalised Capex spends for the financial year by half, doubled target for the Leap-II programme, and launched an initiative to improve the productivity of our overheads. All these initiatives, coupled with new launches and innovative digital solutions for sales and marketing, will help us to tackle the uncertainties caused by the pandemic. We will continue to monitor our plans, and stay prepared dynamically to do course correction if and when required."

Hero MotoCorp had 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 company's revenue from operations for the quarter stood at Rs 6,997 crore as compared to Rs 7,865 crore in Q3FY19.

Also read: Hero MotoCorp share rises 4% ahead of Q4 earnings, here's what brokerages expect

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