MUMBAI:
Hero MotoCorp, the world’s largest two-wheeler manufacturer, today reported its highest- ever revenue for quarter. The company’s Revenue from Operations for the third quarter (October-December 2020) of the FY’ stood at Rs. 9,776 Crore (vs Rs. 6,997 Cr. in Q3 FY’20).
Consolidated Revenue and PAT for the third quarter (October-December 2020) of the FY’ stood at Rs. 9,827 Crore and Rs. 1,029 Crore respectively for the quarter.
This has been possible, thanks to the robust sales volume during the quarter and a combination of key strategic initiatives such as cost reduction efforts to partially offset the impact of the commodity costs and intense operational efficiencies.
The company declared an interim dividend of Rs. 65 per share, amounting to 3250 %age. In addition, the company has announced a special interim dividend of Rs 100 Crore @ Rs. 5 per equity share, to mark the achievement of historic milestone of achieving 100 Million cumulative production of two wheelers, taking the aggregate interim dividend to Rs. 70 per share
On January 21, 2021, Hero MotoCorp surpassed the monumental milestone of 100 Million (10 Crores) units in cumulative production. The 100 millionth motorcycle, the Xtreme 160R, was rolled-out of the Company’s manufacturing facility in Haridwar, in the northern Indian hill state of Uttarakhand.
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said “Our performance in the third-quarter underlines Hero MotoCorp’s operational strength and ability to perform well despite a challenging and volatile environment. The company has been able to drive profitable growth through improvement in market shares, acceleration of Leap-II savings initiatives, continued control on overheads, and cash flow management. We continue to build on our strong portfolio with the launch of special edition variants to commemorate the milestone of 100 Million units in cumulative production.
Going forward, we expect input costs to remain under pressure due to the rising prices of commodities and fuel. The price increase on our range of products that we undertook from January 1 will partially offset these cost pressures. We will continue to focus on driving cost savings, and take judicious price increases if & when necessary.
With the International Monetary Fund (IMF) projecting a strong recovery in India’s economic growth rate in FY 21-22, we remain optimistic about the prospects of personal mobility and consumer demand. Hero MotoCorp is confident to make the most of this economic spur on the back of new launches of exciting products and our strong brand equity with customers across markets.
The government has also provided a balanced and a well-calibrated budget that focuses on reviving growth through infrastructure spends, while generating resources through public sector asset monetization. The emphasis on health, and outlining a five-year path for fiscal deficit, shows the government’s focus on long-term fiscal prudence. We also welcome the step to abolish the anti dumping duty on steel, and rationalization of duties on some other products to address the cost spiral and impact on consumers.”
To mark the occasion of the 100 Million milestone, Hero MotoCorp introduced six celebration edition models. These include four motorcycles – Splendor+, Xtreme 160R, Passion Pro and Glamour and two scooters – Destini 125 & Maestro Edge 110. These will go on sale from February 2021.
At the beginning of the new year, Hero MotoCorp entered into a distribution agreement with Grupo Salinas, founded by Mexican entrepreneur Ricardo Salinas. Following the agreement,the two Companies have come together to form one of the largest distribution globally to sell competitive, high-quality products in the large Mexican market.
