Hero MotoCorp net profit rises 39% to ₹865 crore, beats estimates
- Revenue from operations rose to ₹8,686 crore, marking a growth of nearly 40% year-on-year from ₹6,238 crore in Q4 FY20
Hero MotoCorp on Thursday reported 39.4% increase in its net profit to Rs865 crore for the fourth quarter ended March 31, 2021, compared to ₹621 crore in the same period of previous fiscal.
Profit was higher than ₹799.1 crore estimated by a Bloomberg poll of 9 analysts.
Revenue from operations rose to ₹8,686 crore, marking a growth of nearly 40% year-on-year from ₹6,238 crore in Q4 FY20. Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4 FY21 stood at ₹1,211 crore versus ₹660 crore in Q4 FY20, reflecting 13.8% EBITDA margin and a growth of 84%.
"The company has been 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" the company said in a release.
Dispatches of the New Delhi-headquartered motorcycle maker improved in the fourth quarter as the Company sold a total of 15.68 lakh units of two-wheelers during the Q4’21, registering a growth of 18.5% over the corresponding quarter in the previous year. The company had sold 13.23 lakh units in Q4’20.
"Our tight working capital management has further helped in ensuring the much needed liquidity buffer in these times. Outstanding teamwork and timely measures helped us put the company on a stable course of recovery and eventual growth" said Chief Financial Officer Niranjan Gupta. The company implemented strategic initiatives such as a strict discipline on expenses and prioritization of projects, succeeded substantially in reducing general overhead costs and capex, he added.
In addition, the company has also announced a final dividend of ₹25 per share and special dividend of ₹10 per share.
Shares of Hero MotoCorp rose 4.52% to ₹2,913 apiece on the BSE on Thursday, compared with the benchmark S&P BSE Sensex’s 0.56% rise. The earnings were announced after market hours.
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Business NewsCompaniesCompany ResultsHero MotoCorp net profit rises 39% to ₹865 crore, beats estimates
First Published:6 May 2021, 09:56 PM IST
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