The country’s largest two-wheeler maker Hero MotoCorp Tuesday missed street estimates to report a 27.5% decline in standalone net profit at Rs 627.05 crore for the fourth quarter ended March 31, 2022 on back of weak volumes.
The company had posted net profit of Rs 864.97 crore in the corresponding period of the previous financial year.
Nirmal Bang Institutional Equities had expected the company to report a 24% decline in net profit at Rs 655.70 crore. Nirmal
had estimated net sales in the period to contract 14.7% to Rs 7,407 crore.
Revenues from operations in the period under consideration fell 14.6% to Rs 7421.73 crore from Rs 8685.97 crore earlier. Total expenses last quarter stood at Rs 6759.28 crore, which is a decline of 11.6% over Rs 7644.23 crore registered in Q4FY21. Ebitda (Earnings before interest, tax, depreciation and amortisation) margin for the quarter was 11.2%.
The company sold 11.89 lakh two-wheelers in the fourth quarter, down 24% over 15.68 lakh units recorded in the year-ago period.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, with the economy picking up, the company expects 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. The forecast of a normal monsoon is likely to aid the crops, which in turn is expected to improve cash flows in rural sector. All these factors are likely to help in a steady recovery in consumer sentiments and market demand”, said Gupta.
The company has scheduled for launch multiple product across different segments with an aim to continue building its premium portfolio as well as premiumization of existing models, which will help deliver growth and profitability. Gupta added, “In the coming months, the company will be able to drive profitable growth through the combination of key strategic initiatives such as acceleration of Leap-II savings program to offset the higher commodity prices and input costs and cash flow management.”
For the entire financial year, Hero MotoCorp’s net profit fell to Rs 2473,02 crore, as against Rs 2964.20 crore reported in FY21. Revenues from operations dipped 5% to Rs 29245.47 crore.
The company declared a final dividend of 1750% at Rs. 35 per share (face value of Rs. 2 per equity share). This dividend, together with the Interim dividend, aggregates to Rs 95 per equity share.
Shares of Hero MotoCorp closed at Rs 2486.50 apiece, down by 0.75% on the Bombay Stock Exchange (BSE). The results were announced after market hours.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
