Hero MotoCorp Q3 results: Net profit dips 36.7% YoY to Rs 686 crore, revenue falls 19.4%; misses estimates

The country's largest two-wheeler maker Hero MotoCorp on Thursday reported a 36.7 percent year-on-year (YoY) decline in net profit at Rs 686 crore for the third quarter ended December 31, 2021.

In the corresponding quarter last year, the company posted a net profit of Rs 1,084.5 crore. CNBC-TV18 Polls had predicted a profit of Rs 675 crore for the quarter under review.

Total revenue for the quarter fell 19.4 percent YoY to Rs 7,883 crore from Rs 9,776 crore in the year-ago quarter. The Profit Before Tax (PBT) stood at Rs 911 crore.

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At the operating level, EBITDA fell 32 percent to Rs 959.5 crore in Q3 FY22 over Rs 1,413.7 crore in Q3 FY21. EBITDA margin stood at 12.2 percent in Q3 FY22 as compared to 14.5 percent in Q3FY21. EBITDA is earnings before interest, tax, depreciation and amortization.

The company sold 12.92 lakh units of motorcycles and scooters in Q3 FY22; within this, the global business sold 61,000 units – a growth of around 16 percent.

Niranjan Gupta, chief financial officer, Hero MotoCorp, said, "The current fiscal has seen the domestic two-wheeler industry impacted by twin challenge of softer demand due to pandemic and margin squeeze due to sharp commodity cost inflation. Our continued focus on savings programs combined with judicious price increases have helped cushion the impact on customers as well as margins."

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"The company continues to progress on the launch of its Electric Vehicle, which will be produced at the company’s manufacturing facility at Chittoor in the southern state of Andhra Pradesh.

Through its investments and partnerships like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem – from product to technology, to sales service, customer care, operations and innovation," the company said.

The company declared an interim dividend of Rs 60 per share amounting to 3000 percent.

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The results came after the close of the market hours. Shares of Hero MotoCorp ended at Rs 2,730.00, up by Rs 1.80, or 0.066 percent on the BSE.