Hero MotoCorp Ltd.'s third-quarter profit declined as raw material costs rose and demand remained tepid.
Standalone net profit of India's largest two-wheeler maker fell to Rs 686.1 crore in the quarter-ended December, down 36.7% from a year earlier, according to an exchange filing. That compares with Rs 682.5-crore consensus estimate of analysts tracked by Bloomberg.
Highlights (YoY)
Revenue declined 19.5% to Rs 7,883.3 versus estimate of Rs 7,803.4 crore.
Ebitda fell 32.1% to Rs 960 crore against the estimate of Rs 930.1 crore.
Ebitda margin contracted to 12.2% versus 14.5%.
Sales volume fell 30% to 12.92 lakh units of motorcycles and scooters during the quarter.
Approved interim dividend of Rs 60 per equity share.
“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,” Chief Financial Officer Niranjan Gupta was quoted in exchange filing. “Our continued focus on savings programs combined with judicious price increases have helped cushion the impact on customers as well as margins."
With easing of third wave of Covid-19, and full re-opening of all the sectors of the economy in coming weeks, the company expects a broader economic recovery and increase in consumer confidence.
Shares of Hero MotoCorp closed 0.08% lower on Thursday before the earnings were announced compared with a 0.81% gain in the benchmark NSE Nifty 50.
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