Country’s largest two-wheeler maker Hero MotoCorp on June 9 has reported a standalone profit at Rs 621 crore the fourth quarter of FY20 as against Rs 730.32 crore in same period last year, a decline of 15 percent. The significant fall in tax cost (down 91.5 percent YoY) helped limit the decline in bottomline.
Revenue from operations for the quarter stood at Rs 6,238 crore, falling 21 percent year-on-year, impacted by lower sales volumes, which declined 25 percent year-on-year to 13.35 lakh units during the March quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 38.3 percent to Rs 660 crore and margin dipped 300 bps to 10.6 percent.
“FY20 was a challenging year for the auto industry globally, and yet we at Hero MotoCorp had some positive takeaways from the year. As we now rapidly scale-up operations post the lockdown, it will be critical that the industry receives support from all quarters,” Pawan Munjal, Chairman and CEO at Hero MotoCorp, said.
Profit in FY20 grew 7.3 percent to Rs 3,633 crore, but revenue from operations declined 14.3 percent to Rs 28,836 crore compared to the previous year.
The company announced a final dividend of Rs 25 per share for FY20.The stock plunged 35 percent in the quarter-ended March largely due to slowdown in sales and nationwide lockdown on the back of novel coronavirus, or COVID-19, while it lost 2.3 percent year-to-date and fell 13 percent in the last one-year.