Hero MotoCorp, the world’s largest two-wheeler manufacturer, reported healthy performance for the third quarter (Oct-Dec 2018) of the Financial Year (FY’19).
Driven by strong quarterly sales of 17,98,905 two-wheeler units, the Company’s Revenue from Operations stood at Rs. 7865 Crore and Profit After Tax at Rs. 769 Crore.
EBIDTA margin for the quarter was at 14.0%.
Hero MotoCorp also today announced an interim dividend of Rs 55 per share (2750%).
Destini 125 – the newly launched scooter from Hero MotoCorp – has received an overwhelming response from customers, while the new premium motorcycle Xtreme 200R has also generated a positive uptick in volumes.
Going forward, Hero MotoCorp has lined-up a slew of exciting product launches in the coming months in its focus segments – premium motorcycles & scooters, which will surely generate a lot of excitement in the market.
Hero MotoCorp on Wednesday announced setting-up of its first Research and Development (R&D) Centre at a global location – the Hero Tech Centre Germany GmbH. A wholly-owned subsidiary of Hero MotoCorp Limited – the new Centre of technology – located at Stephanskirchen near Munich in Germany – will operate in tandem with Hero’s Global R&D hub, the Centre of Innovation and Technology (CIT) in Jaipur, in the northern Indian state of Rajasthan.
Hero MotoCorp already has an efficient technology eco-system where it engages with top global design and technology houses from across the world, including Italy, Spain and Thailand.
To begin with, the Hero Tech Centre Germany GmbH – which will be under the direct supervision of Dr. Markus Braunsperger, Chief Technology Officer (CTO) at Hero MotoCorp – will focus on development of new vehicle concepts and future technologies in close cooperation with the teams at CIT in Jaipur. It will also be the epicentre for Hero’s motorsport team – the Hero MotoSports Team Rally that has put India on the global map of motorsports in a short span of time – and will facilitate all rally participation activities, including new product development for the Team.
Dr. Pawan Munjal, Chairman, Hero MotoCorp Ltd said:
India continues to be the fastest-growing major economy in the world, even as global growth has been projected to moderate over the next couple of years. For a country of India’s size and potential, I see huge appetite for sustained growth in the long-term. I believe it is certainly possible to further accelerate our GDP growth from the current level to a double digit if we can manage time-bound execution of our key projects in infrastructure and other key sectors.
The domestic two-wheeler industry also has significant headroom to grow, given the penetration of two-wheelers in India is still quite low. There have been temporary setbacks in the third quarter of the current fiscal on account of multiple factors, leading to higher than normal inventory levels at dealerships.
However, the fourth quarter has historically been positive and we look forward to an improved market situation in the coming months. Hopefully, the upcoming Budget will have enough impetus for the agriculture and social sectors to trigger a positive turnaround in the sentiments.
Highlights | Q3 (Oct-Dec) FY’19
Registers third-quarter sales of 17,98,905 two-wheeler units reflecting a growth of 5.3%
- Net Revenue from Operations: Rs. 7865 Crore (vs. Rs 7314 Cr. for Q3 FY’18) reflecting growth of 7.5%
- Earnings Before Interest, Tax, Depreciation, & Amortization (EBIDTA) stood at Rs. 1105 Crore reflecting 14.0% EBIDTA margin ( vs. 15.8% for Q3 FY’18)
- Profit Before Tax (PBT) at Rs. 1138 Crore and Net Profit After Tax (PAT) stands at Rs. 769 Crore (vs. Rs. 1128 Cr. and Rs. 805 Cr. respectively in Q3 FY’18)
- Total comprehensive income stood at Rs. 766 Crore (vs. Rs. 810 Cr. for Q3 FY’18)
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