Hero MotoCorp Q3 results update!
Last updated: 08 Feb, 2021 | 02:35 pm
- Profit beats estimates: Hero MotoCorp has reported a 23% on-year rise in net profit to Rs 1,084 crore in Oct-Dec 20 period, beating street expectations. Analysts had earlier anticipated a net profit of about Rs 900 crore.
- Record revenues: The company has reported its highest-ever quarterly revenues in Oct-Dec-20 period. Hero MotoCorp's revenue from operations rose 40% on-year to Rs 9,778 crore, higher than Rs 9,509 crore forecasted by analysts earlier. Revenue growth was led by a jump in volumes as well as realisations
- Recovery due to festive season and pent-up demand: Domestic two-wheelers registered a strong turnaround in Oct-Dec 20 period, on the back of robust festive season and pent-up demand. Also, Hero MotoCorp's move to hike prices from January could have led to pre-buying in December.
- Special dividend: Hero MotoCorp announced an interim dividend of Rs 70 per share, including Rs 5 special dividend, as the company touched the 100-million units milestone in the period. The company has fixed February 16, 2021 as the record date. The payment of interim dividend/ dispatch of dividend warrants will be completed by March 6, 2021.
Continuing the path of recovery from the zero sales in April, Indian two-wheeler manufacturers have now shown a robust growth in the preceding two quarters. However, the two-wheeler industry is grappling with steep increases in input costs. Hero MotoCorp's sales volumes have seen a 5% drop in Jan-21. Going forward, the company expects input costs to remain under pressure due to the rising prices of commodities and fuel. The price increase on its range of products that will partially offset these cost pressures. The measures announced in Union Budget 2022 are also expected to provide a boost to demand in the upcoming quarters. Given its leadership position, Hero MotoCorp is well positioned to take advantage of rising demand, as the economy improves further.