Hero Motocorp reported growth of 23.66% in top line sales for the Sep-20 quarter at Rs9,437.32cr. The operating profits for the quarter ended Sep-20 was up 20.36% at Rs1,124.80cr while net profits were also up 9.06% at Rs963.82cr due to more profitable product mix.
This had an overall impact on the margins of Hero Motocorp too. For the Sep-20 quarter, the operating profit margins or OPM was down 33 bps at 11.87% as the higher profits happened on a substantially higher sales base leading to lower margins. Similarly, the net profit margins or NPM for the quarter was lower by 137 basis points at 10.17%, due to the impact of a higher sales base hitting the company margins.
Financial highlights for Sep-20 compared yoy and sequentially
|
Rupees in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
9,473.32 |
7,660.60 |
23.66% |
2,969.08 |
219.07% |
|
Operating Profit |
1,124.80 |
934.56 |
20.36% |
-61.48 |
Not Applicable |
|
Net profit |
963.82 |
883.78 |
9.06% |
57.78 |
1568.09% |
|
|
|
|
|
|
|
|
Diluted EPS |
47.98 |
44.25 |
|
2.96 |
|
|
OPM |
11.87% |
12.20% |
|
-2.07% |
|
|
Net Margins |
10.17% |
11.54% |
|
1.95% |
|
Key takeaways from the Sep-20 quarter results
-
For the Sep-20 ended half year, the total cash flows generated from operations were actually higher by over 25% at Rs3,377cr. This growth in operating cash flows in the quarter came on the back of sharply higher sales, growth in profits and more efficient management of inventory in the quarter.
-
For the Sep-20 quarter, Hero Moto recorded volumes of 18.22 units. This marks a volume growth of 7.7% on a yoy basis. This is clearly indicative that any slowdown of the COVID period is largely history and the company has moved ahead.
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