The two wheeler major's revenue from operations came in at Rs 8,685.97 crore, up 39.2 per cent from Rs 6,238.39 crore in the same quarter last year.
The numbers beat Street expectations as brokerages were anticipating over 30 per cent YoY increase in net profit. Kotak Institutional Equities, for instance, pegged Hero Moto’s PAT at Rs 851.6 crore, up 37 per cent YoY and down just 21 per cent QoQ. Revenue, meanwhile, was seen at Rs 8,493.8 crore, up 33 per cent YoY by global brokerage Nomura.
“Despite the challenges, Hero MotoCorp
grew its market share in both motorcycles and scooters. We also grew our presence in the premium segment that would be further strengthened with our strategic partnership with Harley-Davidson," said Pawan Munjal Chairman & CEO of Hero MotoCorp.
“With the fresh surge in Covid-19, Hero MotoCorp is keeping a close watch on the rapidly evolving situation, as we take steps to protect our employees and operations, while also initiating relief measures to aid the efforts initiated by our organization, and various governments and institutions," he said.
At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) climbed 83.5 per cent YoY to Rs 1,211.2 crore from Rs 659.9 crore. On a quarterly basis, it decreased 14 per cent from Rs 1,413.3 crore.
Pawan Munjal has been re-appointed as the Chairman and CEO for a term of five years with effect from October 1, 2021, subject to the approval of shareholders at the ensuing Annual General Meeting of the Company.
The company has sold 1.56 million two-wheelers during the March quarter as compared to 1.3 million units in the year-ago period.
Hero MotoCorp had halted plant operations temporarily in a staggered manner from April 22-May 1. In view of the rapid escalation in the spread of Covid-19 across the country, the company decided to extend the shutdown till May 9.
All corporate offices of the company are in Work from Home (WFH) mode and a very small number of colleagues are allowed in offices on rotation basis for the continuity of essential services.
On Thursday, Hero MotoCorp's scrip rose 4.67 per cent to close at Rs 2,918.40 on NSE.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.