India’s leading two-wheelers company Hero MotoCorp Ltd, on Thursday, posted its third quarter ended December 2021 report.
The net profit for the quarter came in at ₹686 crore, compared with ₹1,084.47 posted last year in the same quarter. It is a 36.7% year-over-year fall in net profit.
The earnings before interest, tax, depreciation and amortisation (EBITDA) in the reporting quarter stood at ₹960 crore, down 32 percent as against ₹1,413 crore in the third quarter last fiscal.
Hero MotoCorp’s EBITDA margin stood at 12.2 percent in Q3FY22.
The company, in the third quarter, sold 12.92 lakh units of two-wheelers — motorcycles and scooters. It was a 30 percent plunge compared with 18.45 lakh units sold a year ago. Sequentially, the sales declined 10 percent from 14.38 lakh units sold in the second quarter.
The company’s global business sold 61 thousand units in QFY22, up 16 percent year on year.
The spare parts business of the company attracted Rs 1,186 crore in revenue, up 15 percent year on year.
Hero MotoCorp has declared an interim dividend of ₹60 per share on a face value of Rs. 2 per equity share, aggregating to 3,000%.
The company’s revenue from operations for the quarter plummeted to ₹7,883 crore in Q3 vs ₹9,776 crore during Q3 FY21, down 19.4 percent.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said in the current fiscal, the domestic two-wheeler industry is impacted by two changes: Softer demand due to pandemic; margin squeeze owing to sharp commodity cost inflation.
“With the rapid easing of the 3rd wave, and full re-opening of all the sectors of the economy in coming weeks, including the hospitality sector, education sector etc., we expect a much broader economic recovery and increase in consumer confidence,” he said.
He predicted that commodity pricing pressures will diminish in the coming days as supply imbalances are gradually resolved, with some of this reflected in the softening of precious metal and steel prices.
The automaker on Evs said, “the company continues to progress on the launch of its Electric Vehicle (EV), which will be produced at the company’s manufacturing facility at Chittoor in the southern state of Andhra Pradesh. Through its investments and partnerships like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem – from product to technology, to sales service, customer care, operations and innovation.”