Hero MotoCorp registered 23 per cent increase in its profit at Rs 1,029 crore
New Delhi:
Hero MotoCorp has posted 23 per cent increase in its profit after tax at Rs 1,029 crore for the third quarter ended December 31, 2020, as compared to Rs 880 crore in the same period of previous fiscal. Revenue from operations rose to Rs 9,776 crore, marking a growth of nearly 40 per cent year-on-year from Rs 6,997 crore in Q3 FY20. Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q3 FY21 stood at Rs 1,414 crore versus Rs 1,039 crore in Q3 FY20, reflecting 14.5 per cent EBITDA margin and a growth of 36 per cent.
“Our performance in the third-quarter underlines the company’s operational strength and ability to perform well despite a challenging and volatile environment,” said Chief Financial Officer Niranjan Gupta. The company has been able to drive profitable growth through improvement in market shares, acceleration of savings initiatives, continued control on overheads and cash flow management, he added.
“Going forward, we expect input costs to remain under pressure due to the rising prices of commodities and fuel. The price increase on our range of products that we undertook from January 1 will partially offset these cost pressures,” said Gupta. He added that the company will continue to focus on driving cost savings, and take judicious price increases if and when necessary.
The world’s largest two-wheeler manufacturer sold 18.45 lakh units in Q3 FY21, clocking a growth of 19.7 per cent over the corresponding quarter of previous fiscal. The company’s board declared an interim dividend of Rs 65 per share (3,250 per cent).
In addition, the company has also announced a special interim dividend of Rs 100 crore, that is Rs 5 per equity share, to mark the historic milestone of achieving 100 million cumulative production of two-wheelers, taking the aggregate interim dividend to Rs 70 per share.
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