Moneycontrol Bureau
India's largest two-wheeler maker Hero Motocorp's second quarter (July-September) profit beat street expectations but rest of the numbers were in line. Net profit shot up 58.5 percent year-on-year to Rs 763 crore led by other income of Rs 193.5 crore (as against Rs 115.5 crore Y-o-Y). Profit in the year-ago period was Rs 481.4 crore.
Profit was expected at Rs 689 crore on revenue of Rs 6,960 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Revenue grew by 20.8 percent to Rs 6,915.3 crore in the quarter ended September 2014 compared to Rs 5,726.2 crore in same quarter last year driven by strong volume growth of 19.4 percent at 16.91 lakh units year-on-year. Volume growth was led by new launches and pick up in rural growth.
"The Splendor iSmart with the path-breaking i3S technology, Pleasure scooter with the integrated braking system and the new ZMR and Karizma R have all been driving large volumes, adding to leadership," said the company in its filing.
Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 12.2 percent on yearly basis to Rs 935 crore but margin declined by 100 basis points to 13.5 percent during the same period, impacted by higher other expenses. Analysts had expected both at Rs 948 crore and 13.6 percent, respectively.
Other expenses during the quarter surged 27.4 percent to Rs 724.8 crore compared to Rs 569 crore in corresponding quarter of last fiscal while tax expenses increased to Rs 285 crore from Rs 176.9 crore during the same period. Depreciation cost in the quarter was Rs 74.96 crore, declined from Rs 286.91 crore in same quarter last year.
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