Hero MotoCorp fell 1.69% to Rs 2345.40 after consolidated net profit slumped 21.6% to Rs 604.63 crore on 20.4% fall in net sales to Rs 6,333.51 crore in Q4 FY20 over Q4 FY19.
Profit before tax stood at Rs 637.53 crore in Q4 March 2020, down by 44% from Rs 1,137.49 crore in Q4 March 2019.
The company sold 13.23 lakh two-wheeler units during the fourth quarter, which is lower by 25.7% as compared to 17.81 lakh two-wheeler sold in the same period last year.
EBITDA declined 38.3% to Rs 660 crore in Q4 FY20 from Rs 1069 crore in Q4 FY19. EBITDA margin stood at 10.6% as on 31 March 2020 as against 13.6% as on 31 March 2019.
Consolidated net profit rose 5.6% to Rs 3,638.11 crore on 13.9% decrease in net sales to Rs 29,253.97 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 4,611.08 crore in FY20, down by 9.7% from Rs 5,104.30 crore in FY19. The company declared a final dividend of Rs 25 per share.
Niranjan Gupta, chief financial officer (CFO), Hero MotoCorp, said, "As we march towards rapid recovery from lockdown, we have taken several measures towards saving cost , improve productivity of spends, and conserve cash. We have rationalized capex spends for the financial year by half, doubled target for the Leap-II program, and launched an initiative to improve the productivity of our overheads. All these initiatives, coupled with new launches and innovative digital solution for sales and marketing, will help us to tackle the uncertainties caused by the pandemic. We will continue to monitor our plans, and stay prepared dynamically to do course correction if and when required."
Hero MotoCorp is a motorcycle and scooter manufacturer. The company is the largest two-wheeler manufacturer in the world.
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