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Last Updated : Apr 26, 2019 10:08 PM IST | Source: Moneycontrol.com

Hero Motocorp Q4 profit tanks 25% to Rs 730 crore on weak sales volume

Revenue from operations fell by 7.92 percent to Rs 7,885 crore year-on-year.

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Weighed down by weak sales numbers, Hero Motocorp's profit in the March quarter declined 25 percent to Rs 730.32 crore against Rs 967.4 crore in same period last year.

Revenue from operations fell by 7.92 percent to Rs 7,885 crore year-on-year.

Hero sold 17.81 lakh units in January-March quarter 2019, lower from 20.01 lakh units sold in corresponding period last fiscal.

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"While the near-term prospect of the domestic two-wheeler market is likely to remain challenging, the festive season however is expected to brighten the sentiment and revive growth in the second half of FY20," said Pawan Munjal, Chairman.

At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 22 percent year-on-year to Rs 1,069.3 crore in Q4.

Margin contracted to 13.6 percent in quarter ended March 2019, down by 240 bps against 16 percent in same period last year.

Numbers are largely in line with estimates. CNBC-TV18 poll estimates for profit were Rs 727.5 crore on revenue Rs 7,763 crore for the quarter.

For financial year 2018-19, profit declined 8.5 percent to Rs 3,385 crore but revenue grew by 2.4 percent to Rs 33,650.5 crore compared to previous fiscal.

Hero sold 78.2 lakh units during the year, higher by 3 percent over 75.87 lakh units sold in previous year.

"EBIDTA for the year stood at Rs 4,930 crore reflecting 14.7 percent margin (against 16.4 percent for previous year)," the world's largest manufacturer of motorcycles and scooters said in its BSE filing.

Munjal said the current fiscal (FY20) is expected to be yet another challenging year in view of the upcoming stringent emission norms of BS VI. "We are gearing up to launch its range of BS VI-compliant motorcycles and scooters well before the given timeline."

The stock had plunged nearly 18 percent during the March quarter, underperforming Nifty (up 7 percent) and auto index (down 10 percent) in the same period.

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First Published on Apr 26, 2019 06:22 pm
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