The company had posted a net profit of Rs 61.31 crore in the corresponding period of the last financial year. An ET Now poll had estimated the company to register a net profit of Rs 441.2 crore and revenues of Rs 5785.4 crore in the period under review.
Revenues from operations in the quarter under consideration stood at Rs 5487.07 crore, which is an increase of 85 per cent over Rs 2971.54 crore reported in the year-ago period.
Total expenses last quarter surged 69 per cent to Rs 5141.31 crore. EBITDA (Earnings before interest, tax, depreciation and amortization)) for the quarter stood at Rs. 515 Crore (vs Rs 108 Crore in Q1 FY’21) reflecting 9.4 per cent EBITDA margin and a growth of 376 per cent.
Hero MotoCorp Chief Financial Officer Niranjan Gupta said, “The first quarter of this fiscal has been adversely impacted by Covid-19. Despite the challenges posed by the pandemic, Hero MotoCorp achieved significant growth in both earnings and profitability compared to the corresponding quarter of the previous fiscal. The company improved its market share in the quarter by more than 200 bps over the full year of FY 21.”
Nearly half of the first quarter witnessed significant disruptions triggered by localized lockdowns imposed by various state governments and authorities across the country in the wake of escalating coronavirus cases, thereby restricting the movement of logistics and dampening customer sentiments.
In April, Hero MotoCorp suspended its operations temporarily at all of its manufacturing facilities across the country, including its Global Parts Center (GPC) in Neemrana and its R&D facility – the Centre of Innovation and Technology (CIT), Jaipur due to the second wave of Covid-19 pandemic. The company resumed production at its manufacturing plants in India in a staggered manner from May 17, 2021.
The company sold 10.25 lakh two-wheelers last quarter, a growth of 81 per cent over 5.65 lakh units in Q1FY21.
Gupta added commodity costs continued to rise during the quarter under consideration, thereby impacting the industry margins. “We have taken judicious and measured pricing decisions, reducing the impact on the customers by offsetting part of the increase through the accelerated Leap-2 saving program”, he informed.
Hero MotoCorp said it remains optimistic about demand over the coming months with the start of the festive season and also a healthy monsoon and encouraging farm activity. “With last-mile retail opening up further, we expect numbers to be positive as we move forward. Hero MotoCorp aims to build further on its market leadership as we continue to delight customers with superior products and technology”, Gupta said.
Shares of Hero MotoCorp closed at Rs 2782.65 apiece, down by 0.17 per cent on the Bombay Stock Exchange (BSE). The results were announced after market hours.
