Hero MotoCorp rose 3.27% to Rs 3,553.25 after the company's consolidated net profit jumped 13.7% to Rs 1,029.17 crore on a 38.9% rise in net sales at Rs 9,827.05 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) surged 30.6% to Rs 1,363.92 crore in Q3 December 2020 as against Rs 1,044.44 crore in Q3 December 2019. Current tax expense for the quarter soared 88.3% to Rs 338.44 crore as against Rs 179.73 crore in Q3 December 2019. The Q3 result was declared after trading hours yesterday, 4 February 2021.
The company sold 18.45 lakh units in Q3 FY21, a growth of 19.7% Y-o-Y (year-on-year). On a standalone basis, Profit After Tax (PAT) grew 23.2% to Rs 1,084 crore and net revenue from operations rose 39.7% to Rs 9,776 crore in Q3 FY21 over Q3 FY20. Earnings Before Interest, Tax, Depreciation, & Amortization (EBITDA) for the quarter stood at Rs 1,414 crore, reflecting 14.5% EBITDA margin and a growth of 36.1%.
The result was boosted by the robust sales volume during the quarter and a combination of key strategic initiatives such as cost reduction efforts to partially offset the impact of the commodity costs and intense operational efficiencies.
On 21 January 2021, Hero MotoCorp surpassed the monumental milestone of 100 million (10 crore) units in cumulative production. The 100 millionth motorcycle, the Xtreme 160R, was rolled-out of the company's manufacturing facility in Haridwar, Uttarakhand.
The company declared an interim dividend of Rs 65 per share, amounting to 3250%. In addition, the company has also announced a special interim dividend of Rs 5 per equity share, to mark the achievement of historic milestone of achieving 100 million cumulative production of two wheelers, taking the aggregate interim dividend to Rs 70 per share. The board has fixed 16 February 2021 as record date for the payment of interim dividend.
Niranjan Gupta, the chief financial officer (CFO) of Hero MotoCorp, has said that: "Our performance in the third-quarter underlines Hero MotoCorp's operational strength and ability to perform well despite a challenging and volatile environment. The company has been able to drive profitable growth through improvement in market shares, acceleration of Leap-II savings initiatives, continued control on overheads, and cash flow management. We continue to build on our strong portfolio with the launch of special edition variants to commemorate the milestone of 100 Million units in cumulative production. 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. We will continue to focus on driving cost savings, and take judicious price increases if & when necessary."
"With the International Monetary Fund (IMF) projecting a strong recovery in India's economic growth rate in FY 21-22, we remain optimistic about the prospects of personal mobility and consumer demand. Hero MotoCorp is confident to make the most of this economic spur on the back of new launches of exciting products and our strong brand equity with customers across markets. The government has also provided a balanced and a well-calibrated budget that focuses on reviving growth through infrastructure spends, while generating resources through public sector asset monetization. The emphasis on health, and outlining a five-year path for fiscal deficit, shows the government's focus on long-term fiscal prudence. We also welcome the step to abolish the anti dumping duty on steel, and rationalization of duties on some other products to address the cost spiral and impact on consumers," he added.
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in a year.
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