Shares of the world’s largest two-wheeler maker Hero MotoCorp fell as much as 3.17 per cent, on account of profit-booking, to hit an intraday low of Rs 2,820.50, a day after it reported March quarter earnings. Hero MotoCorp’s net profit rose 39 per cent to Rs 865 crore from Rs 621 crore during the same quarter last year.
Its revenue from operations advanced 39 per cent to Rs 8,686 crore from Rs 6,238 crore during the March quarter of 2020.
Its operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs 1,211 crore reflecting 13.9 EBITDA margin.
During the quarter Hero MotoCorp sold 15.68 lakh units of motorcycles and scooters registering a growth of 18.5 per cent over the corresponding quarter in the previous year. The company had sold 13.23 lakh units in Q4FY20.
Hero MotoCorp proposed dividend of Rs 25 per share and a special dividend of Rs 10 per share. “This dividend together with the Interim dividend, aggregates to Rs 90 per equity share and special dividend of Rs. 15 per equity share, taking the total dividend for the year 2020-21 to Rs 105 per share i.e 5,250 per cent,” Hero MotoCorp said in a press release.
“In 2020, as the restrictions were lifted, Hero MotoCorp managed to contain the effects of the pandemic on its business and financial performance. Thanks to strategic initiatives such as a strict discipline on expenses and prioritization of projects, we succeeded in substantially reducing general overhead costs and capex. Our tight working capital management has further helped in ensuring the much needed liquidity buffer in these times. Outstanding teamwork and timely measures helped us put the company on a stable course of recovery and eventual growth,” Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said in a statement.
As of 12:48 pm, Hero MotoCorp shares traded 2.4 per cent higher at Rs 2,843, underperforming the Sensex which was up 0.4 per cent.