Hero MotoCorp Q3 profit rises 7.5 pct to Rs 525 crore

Written by PTI | New Delhi | Updated: Jan 31 2014, 00:06am hrs
Hero MotoCorpHero MotoCorp had posted a profit of Rs 487.89 cr in the same period of previous financial year. PTI
The country's largest two-wheeler maker Hero MotoCorp today reported a 7.53 per cent increase in profit after tax to Rs 524.66 crore for the third quarter ended December 31 on robust sales.

The company had posted a profit of Rs 487.89 crore in the same period of the previous financial year.

Net sales rose to Rs 6,845.91 crore from Rs 6,151.31 crore a year earlier, the company said in a statement.

Hero MotoCorp sold 16,80,940 two-wheelers last quarter, compared with 15,73,135 units in the year-ago period.

"We have been able to post solid sales in the quarter in a relatively dull market and our PAT (profit after tax) and total turnover figures are up from the corresponding quarter last year," Hero MotoCorp Ltd Managing Director & Chief Executive Officer Pawan Munjal said in a statement.

However, the company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) has been affected by the partial recovery of rising metal costs and currency fluctuations, he added.

"While the industry overall is under constant pressure due to a number of reasons, we are confident of and committed to deliver value to our stakeholders. For this, we will continue to challenge the existing benchmarks and innovate constantly to pave the way for improved performance," Munjal said.

The company said it started dispatching vehicles to new markets such as Tanzania, Uganda, Burundi, Egypt, Ecuador and Bangladesh during the quarter.

"The company is preparing to set up a manufacturing unit in Colombia to cater to the Latin American markets. In the first quarter of 2014, Hero MotoCorp will enter Ethiopia, Turkey and Nicaragua," it added.

Hero MotoCorp shares declined 3.43 per cent to Rs 1,999.75 at the close on the BSE Sensex.

(Reuters) India's Hero MotoCorp profit rises 7.5 pct, misses estimates

Hero MotoCorp, India's largest two-wheeled vehicle maker, posted a slower-than-expected 7.5 percent rise in third-quarter profit, hurt by a rise in input costs and currency fluctuations.

Net profit was 5.25 billion rupees for the fiscal quarter ended December, compared with 4.88 billion rupees a year earlier, Hero said in a statement on Thursday.

Analysts on average expected a net profit of 6.04 billion rupees, according to Thomson Reuters I/B/E/S.

Net sales rose 11 percent to 68.8 billion rupees. Sales in volume terms rose 6 percent from a year earlier.

Since its 2011 split from Japan's Honda Motor Co, Hero has been investing heavily in technology to develop new bikes. The company, like rival Bajaj Auto Ltd, has been pushing sales abroad to make up for the shrinking market share at home.

"We expect the market leader to wilt under sustained pressure from Honda and in our opinion there is too much is riding on new product launches from its untested greenfield platform," Nitesh Sharma an analyst with Espirito Santo Securities said.