Hero MotoCorp fell 2.23% to Rs 2673 after the two-wheeler major's consolidated net profit declined 30.95% to Rs 703.74 crore on 18.46% fall in net sales to Rs 8013.08 crore in Q3 December 2021 over Q3 December 2020.
Profit before tax (PBT) fell 31.38% year-on-year to Rs 935.98 crore in Q3 December 2021.On a standalone basis, Hero MotoCorp's net profit declined 36.73% to Rs 686.13 crore on 19.36% fall in net sales to Rs 7883.27 crore in Q3 December 2021 over Q3 December 2020. Parts business continued to do very well at Rs 1,186 crore, with growth of 15%.
Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) for the quarter stood at Rs 960 crore. EBITDA margin for the third quarter was at 12.2%.
The company declared interim dividend of Rs 60 per share. The payment of interim dividend/ dispatch of dividend warrants will be completed by 12 March 2022.
The company sold 12.92 lakh units of motorcycles and scooters in Q3 FY22; within this, Global Business sold 61 thousand units - a growth of around 16%.
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.
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., we 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. We will continue to accelerate our savings program, premiumise within the brands, and take price increases where necessary."
Hero MotoCorp designs and develops technologically advanced motorcycles and scooters for customers around the world. It became the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU