Hero Motocorp Q4 Profit Falls 28% On Weak Volumes
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India’s largest two-wheeler maker Hero MotoCorp posted weak set of numbers as both bottom and top line took a hit, mainly due to weak rural demand, price hikes and high raw material costs.
“With the economy picking up, we expect the demand for motorcycles and scooters to see a positive turnaround in the coming months. While concerns related to high input costs continue to remain a challenge, we will keep monitoring the situation and take judicious measures as appropriate,” said Hero MotoCorp CFO Niranjan Gupta.
Standalone net profit stood at ₹627 crore for the March quarter, down 28% compared with ₹869 crore in the last year period.
Revenue from operations too fell 14% to ₹7,422 crore during the fourth quarter.
On Monday, Hero MotoCorp scrip was down 1.06% to close at ₹2,480.05 on NSE.
The company’s board has recommended a final dividend of ₹35 per share subject to approval of members.
“With the economy picking up, we expect the demand for motorcycles and scooters to see a positive turnaround in the coming months. While concerns related to high input costs continue to remain a challenge, we will keep monitoring the situation and take judicious measures as appropriate,” said Hero MotoCorp CFO Niranjan Gupta.
The company has sold 11.9 lakh units of motorcycles and scooters sold in the January-March period, down 24% year-on-year.
“The forecast of a normal monsoon is likely to aid the crops, which in turn is expected to improve cash flows in rural sector. All these factors are likely to help in a steady recovery in consumer sentiments and market demand. In FY’23, we have lined up multiple product launches in different segments with an aim to continue building our premium portfolio as well as premiumization of existing models, which will help us deliver growth and profitability,” Niranjan Gupta said.
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