Two-wheeler maker Hero MotoCorp on Thursday said it posted a 44.2% rise in consolidated net profit to ₹885.28 crore for the quarter ended March 31.
Compared with the immediately previous quarter, however, net profit declined almost 14%. Total income rose to ₹8,758 crore from ₹6,490.92 crore a year earlier, but lower than the ₹10,032.61 crore recorded in October-December 2020. For the full year, consolidated net profit fell 20% to ₹2,936.05 crore, while total income rose 5% to ₹31,517.09 crore.
During the quarter, the company sold 15.68 lakh units of motorcycles and scooters and for the full year, the number stood at 58 lakh units.
Pawan Munjal, who has been re-appointed as chairman and CEO for a five-year term effective October 1, said, “The FY2021 was one of the most challenging periods for the entire world due to the outbreak of the Coronavirus pandemic. While a late recovery towards the second half of FY’21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in COVID-19 cases.”
He added that despite the challenges, Hero MotoCorp grew its market share in both motorcycles and scooters as well as in the premium segment that would be further strengthened with the company’s strategic partnership with Harley-Davidson.
“With the fresh surge in COVID-19, Hero MotoCorp is keeping a close watch on the rapidly evolving situation. Going forward, we continue to remain cautiously optimistic on the demand for personal mobility despite the challenging circumstances,” Mr. Munjal said.
He added that the company would continue to strengthen efforts towards driving in green mobility and would launch its first electric vehicle in this financial year.
The company has proposed a final dividend of ₹25 per share and special dividend of ₹10 per share.
Niranjan Gupta, Chief Financial Officer, said, “We expect normalcy to kick in from the second quarter with a likely slowdown in COVID-19 cases and higher vaccination levels.”
Mr. Gupta added that a healthy monsoon and harvest season and a rebound in GDP should aid the industry’s recovery from Q2 onwards. “The company also expects a significant growth in its global business with a renewed thrust on developing key overseas markets,” he said.
The company also added that its plant operations would resume on May 10.
