Hero MotoCorp reported a consolidated net profit to Rs 901.81 crore for Q3 December 2019, up by 16.3% from net profit of Rs 775.26 crore in the same period last year.
The stock rose 2.22% to Rs 2465.55. It has traded in the range of Rs 2446.90 and Rs 2494.80 so far during the day.
Net sales, however, declined 10.9% to Rs 7074.53 crore in Q3 December 2019 (Q3 FY20) as against Rs 7936.88 crore in Q3 December 2018 (Q3 FY19).
Total expenses during the quarter stood at Rs 6016.91 crore, down 11.9% from Rs 6827.50 crore in the same period last year. Financing costs surged 29.7% to Rs 11.74 crore in Q3 FY20 compared with Rs 9.05 crore in Q3 FY19.
Profit before tax (PBT) fell 9.1% to Rs 1044.44 crore in Q3 FY20 from Rs 1149.63 crore in Q3 FY19, impacted largely by depreciation costs that jumped 33.3% year-on-year (YoY) to 210.97 crore. Current tax expenses declined 49.36% to Rs 179.73 in Q3 FY20 from Rs 354.93 crore in Q3 FY19.
Also Read
Total sales volume stood at 15,40,876 units in Q3 FY20, registering a decline of 14.34% YoY.
The company said it 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.
Niranjan Gupta, chief financial officer (CFO), Hero MotoCorp, said, "The two wheeler 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 (FY21)."
The company declared an interim dividend of Rs 65 per share. The record date is fixed at 18 February 2020.
Hero MotoCorp is a motorcycle and scooter manufacturer. The company is the largest two-wheeler manufacturer in the world.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
