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Hero MotoCorp, world’s largest two-wheeler maker, on Wednesday said its net profit for the quarter ended March stood at Rs 554 crore, a drop of a little over three per cent compared to Rs 574 crore in the year-ago period. The profit was, however, six per cent higher than the Bloomberg consensus estimate of Rs 522.8 crore.
Net sales during the quarter stood at Rs 6,456 crore, an increase of a little over six per cent compared to Rs 6,072 crore in the corresponding period last year. Net sales were, however, lower than analysts’ estimate of Rs 6,492.8 crore.
Two-wheeler sales stood at 1,589,462 units, up from 1,527,351 units in the year-ago period.
For 2013-14, the company’s net profit dropped marginally to Rs 2,109 crore from Rs 2,118 crore in 2012-13. Net sales rose 6.5 per cent — from Rs 23,583 crore to Rs 25,125 crore. The number of units sold in 2013-14 stood at 6,245,960, against 6,075,583 units in 2012-13.
Chief Executive and Managing Director Pawan Munjal said, “The sector continued to witness tepid growth in FY14, though the sentiment improved in the second half of the year, starting with the festival season in October… FY14 was all about setting new benchmarks, which culminated with sales of 6.25 million during the year, our highest sales for any financial year.”
On the outlook, he said: “The country has just entered a new era of governance. After three long decades, a single political party has come to power with such a huge majority. Clearly, it is a mandate for good governance, development and inclusive growth. With the new government expected to hasten the reforms process and improve the investment climate, we look forward to a revival of the economy and industry this year.”
On Wednesday, the Hero MotoCorp stock closed at Rs 2,350.3 on the BSE, up two per cent. The company’s earnings were announced after market hours.
