Hero MotoCorp's Q3 profit jumps 23% to Rs. 1,084 crore
Hero MotoCorp has reported a net profit of Rs. 1,084 crore for the quarter ending December 31, translating to a 23.2% year-on-year increase. The profit figures for the country's largest two-wheeler maker rose for the second straight quarter thanks to better sales in rural and semi-urban areas and improved demand for personal mobility during the pandemic. Here are more details.
Hero's net sales in Q3 increased by nearly 40%
In Q3, Hero's total sales increased by 19.7% to 18.45 lakh units, registering a net quarterly growth of 39.7%. With respect to the September quarter, revenue improved marginally from Rs. 9,367.34 crore to Rs. 9,776 crore in December. The company's net profit of Rs. 1,085 crore in Q3 beat Bloomberg's net profit estimate of Rs. 900 crore.
EBITDA grew by 36% to Rs. 1,414 crore
Hero's earnings before interest, tax, depreciation and amortization (EBITDA) increased 36% to Rs. 1,414 crore in the quarter-ending December. The EBITDA margin stood at 14.5%. Meanwhile, owing to the disruption in global supply chain caused by the COVID-19 pandemic, the company's raw material cost increased by 46.8%. Employee and other expenses also jumped by 9.9% and 15.2%, respectively.
The company manufactured a record eight lakh two-wheelers in October
Propelled by a robust demand for personal mobility and improved sales in semi-urban areas, Hero manufactured around eight lakh two-wheelers in October. In the same month, the company marked its highest ever monthly sales, recording a 35% year-on-year increase in domestic sales. The total dispatches of motorcycles and scooters increased by 32.5% and 59.6% to over 7,32,498 units and 74,350 units, respectively.
A new vertical for Harley-Davidson's operations in India
Hero MotoCorp has also set up a new vertical for managing the sales, service, and distribution of Harley-Davidson motorcycles and merchandise in India. At present, 11 Harley-Davidson dealerships are currently active but Hero plans to add more outlets to serve at a pan-India level.
