Hero MotoCorp posted a 14.5% (YoY) jump in net profit at Rs.880 crore despite a 11% drop in revenue at Rs.6997 crore and this was thanks to lower raw material prices and lower tax outgo.
PBT was at Rs.1012 crore v/s Rs.1138 crore.
EBITDA for the quarter was down 6% at Rs.1039 crore but margins rose 80 bps to 14.84%.
The company announced an interim dividend of 3250% amounting to Rs 65 per share.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, "The twowheeler industry continues to face challenges amidst an overall economic slowdown. Early indicators, such as a positive Rabi crop, augur well for the rural economy, which in turn is likely to help the industry. The slew of measures announced by the Finance Minister as part of the Union Budget earlier this week would also go a long way in reviving the economy. However, it will take sometime for the two-wheeler industry to see a sustained recovery. We expect to see positive turnaround in the second half of the new fiscal (FY'21)."
The company is geared-up to transition its entire product range to the new emission norms well before the regulatory deadline and plans to stop all BS IV production by mid- February.
The stock opened 3% higher today at Rs.2480, going up almost 4% to Rs.2494.80. The stock’s high is at Rs.3021.15 and low is at Rs.2228.25.