Companies

Hero MotoCorp posts Rs.883 crore net in Q1

Hero MotoCorp, the country’s largest two-wheeler maker, reported its highest-ever quarterly net profit of Rs.883.10 crore in the April-June 2016 quarter, an increase of 18.2 per cent over the net profit of Rs.747.54 crore in the year-earlier period.

Total income from operations stood at Rs.8,010.66 crore against Rs. 7,435.47 crore. “The first quarter of this fiscal carried forward the growth trajectory that we set for ourselves in the previous quarter,” said Pawan Munjal, Chairman, Managing Director and CEO, Hero MotoCorp.

Good monsoon

With the above average monsoon so far and the implementation of the seventh pay commission recommendations, the company remained “cautiously optimistic” about the remaining months of the current financial year, he said. The company sold 17,45,389 two-wheelers during the quarter, its highest ever sales in a quarter, as against 16,45,867 units.

Better margin

“Hero MotoCorp reported strong operational performance in 1Q FY17. While revenues came in below expectation, EBITDA margin came in ahead of estimates,” said Arun Agarwal, Associate Vice-President, Research, Kotak Securities.

“1Q FY17 adjusted EBITDA margin was one of the highest in the past several quarters. Due to strong operating performance, net profits came in better than expected,” he said. Hero MotoCorp scrip ended marginally higher by 0.17 per cent at Rs.3,440 per share on the BSE.

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Printable version | Nov 21, 2020 4:31:10 PM | https://www.thehindu.com/business/companies/Hero-MotoCorp-posts-Rs.883-crore-net-in-Q1/article14558973.ece

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