Hero MotoCorp, which reported an almost 14% dip in net profit in the fourth quarter of 2016-17, on Wednesday announced plans to invest ₹2,500 crore over the next two years on new product development and capacity expansion.
The country’s largest two-wheeler maker posted a stand-alone net profit of ₹717.75 crore in the January-March 2017 period, down from ₹833.29 crore in the same quarter last year, largely due to higher discounts offered on the BS-III vehicles. The company pegged revenue impact of this at ₹193.28 crore.
Revenue decline
The company’s total income declined to ₹7,606.31 crore during the reported quarter from ₹8,227.93 crore, a fall of 7.55%. Hero MotoCorp’s net profit rose almost 7% to ₹3,377.12 crore for the full year, while revenue increased marginally to ₹31,368.55 crore.
“We have planned a capex of around ₹2,500 crore up to FY’19 towards product development, digitisation, phase-wise capacity installation and expansion at our existing facility at Gujarat and our upcoming plants at Andhra Pradesh and Bangladesh,” Pawan Munjal, Chairman, MD & CEO, Hero MotoCorp said.
