Hero MotoCorp Ltd., the world’s largest manufacturer of motorcycles and scooters, today reported a profit after tax (PAT) of Rs. 3,385 Crore for the recently concluded financial year 2018-2019. The Company’s PAT stood at Rs. 3,697 Crore in the previous year (FY 2017-2018).
Riding on its highest-ever sales of 78,20,745 units in a financial year (FY), Hero MotoCorp registered revenue of Rs. 33,651 Crore for FY’19, as compared to Rs. 32,230 Crore of FY’18; a growth of 4.4%. The Company reported EBIDTA margin at 14.7% (vs. 16.4% in the previous year).
Commenting on the occasion, Dr. Pawan Munjal, Chairman, Hero MotoCorp, said,
We remain committed to creating sustained value for our stakeholders. It is a testimony to our grit and resilience that we registered record sales of 7.8 million units during the fiscal, amidst a sluggish market scenario in several geographies and maintained our Leadership amidst challenging market environments. We also gave shape to our vision of creating multiple hubs of R&D excellence by setting-up our first international technology center in Germany. Our commitment towards environment remains a continuous effort as our upcoming new Garden Factory at Chittoor in Andhra Pradesh leaps towards completion. Most significantly, this fiscal, we forayed into two new product segments the premium motorcycle space with Xtreme 200R’ and the 125cc scooter category with ‘Destini 125. We are aiming for aggressive market share gains in these categories.
“While the near-term prospect of the domestic two-wheeler market is likely to remain challenging, the festive season however is expected to brighten the sentiment and revive growth in the second half of FY’20,”
he added.
The fourth quarter of FY’19 (Jan’19-Mar’19) was a difficult period that saw the two- wheeler industry contract significantly in the face of external factors. For this quarter, Hero MotoCorp reported Revenue from operations of Rs. 7,885 Crore (vs. Rs. 8,564 Crore in the corresponding quarter last year). Profit after tax (PAT) for Q4 FY’19 was Rs. 730 Crore (vs. Rs 967 Crore in corresponding quarter FY’18). The EBIDTA margin for the quarter stood at 13.6%..
The current fiscal (FY 2020) is expected to be yet another challenging year in view of the upcoming stringent emission norms of BS VI. In the interest of the society at large and for the safety of future generations, Hero MotoCorp remains committed to preserving the highest of environmental standards, and is accordingly gearing up to launch its range of BS VI-compliant motorcycles and scooters well before the given timeline.
Highlights | FY’19 (Apr’18-Mar’19):
- Clocked sales of 78,20,745 units in FY’19
- Revenue from Operations: Rs.33,651 Crore (vs. Rs. 32,230 Cr. Of FY’18)
- Earnings Before Interest, Tax, Depreciation, & Amortization (EBIDTA) for stood at Rs. 4,930
- Crore reflecting 14.7% EBIDTA margin ( vs. 16.4% for the corresponding period last year)
- Profit Before Tax (PBT) at Rs. 5011 Crore and Net Profit After Tax (PAT) stands at Rs. 3,385 Crore (vs. Rs.5244 Cr. and Rs. 3,697 Cr. respectively in the corresponding period last year)
You can add more to this story by commenting below.
