HERO MOTOCORP Announces Quarterly Results (3QFY21); Net Profit Up 23.2%

Wed, 10 Feb

HERO MOTOCORP has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

HERO MOTOCORP Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	69,967	93,673	97,758	4.4%	39.7%
Other income	Rs m	1,822	1,413	2,027	43.4%	11.2%
Turnover	Rs m	71,789	95,087	99,785	4.9%	39.0%
Expenses	Rs m	59,578	80,809	83,621	3.5%	40.4%
Gross profit	Rs m	10,390	12,864	14,136	9.9%	36.1%
Depreciation	Rs m	2,037	1,732	1,698	-1.9%	-16.6%
Interest	Rs m	59	46	47	0.2%	-21.5%
Profit before tax	Rs m	10,115	12,500	14,418	15.4%	42.5%
Tax	Rs m	1,311	2,965	3,574	20.5%	172.5%
Profit after tax	Rs m	8,804	9,535	10,845	13.7%	23.2%
Gross profit margin	%	14.8	13.7	14.5
Effective tax rate	%	13.0	23.7	24.8
Net profit margin	%	12.3	10.0	10.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 39.7% on a year-on-year (YoY) basis. The expenses were up by 40.4% YoY during the same period.
• The company's operating profit increased by 36.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 14.5% in 3QFY21 as against 14.8% in 3QFY20.
• Depreciation charges declined by 16.6% and finance costs declined by 21.5% YoY, respectively.
• Other income increased by 11.2% YoY during the quarter.
• Net profit for the quarter increased by 23.2% YoY. Net profit margins during the quarter declined from 12.3% in 3QFY20 to 10.9% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.5% QoQ during the same period.
• The company's operating profit increased by 9.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.5% in 3QFY21 as against 13.7% in 2QFY20.
• Net profit for the quarter increased by 13.7% QoQ, while net profit margins increased from 10.0% in 2QFY20 to 10.9% in 3QFY21.

To see how HERO MOTOCORP has performed over the last eight quarters,please visit here.

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HERO MOTOCORP Share Price Performance

Over the last one year, HERO MOTOCORP share price has moved up from Rs 2,385.1 to Rs 3,514.6, registering a Gain of Rs 1,129.6 or around 47.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,523.7 (down 0.4%). Over the last one year it has moved up from 17,647.8 to 24,523.7, a gain of 6,876 points (up 39.0%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

Current Valuations

At the current price of Rs 3,514.6, the price to earnings (P/E) ratio of HERO MOTOCORP stands at 25.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.9 times.