Hero MotoCorp, the world's largest two-wheeler manufacturer, today reported its financial performance for the first quarter (April-June 2020) of the FY' 2021.
The Company reported an EBITDA of Rs. 108 Cr. and PAT of Rs. 61 Cr. for Ql, recording significant volume market share gains of 333 bps. Delivering a positive bottom line, despite only 25% capacity utilization, reflects the resilience of the portfolio and ability to optimize costs and improve productivity.
The financial results are not comparable with corresponding quarter and not a reflection of underlying performance, as the quarter was impacted by lockdown for most parts of the three months' period. The reported EBIDTA margins were at 3.6 %; excluding the fixed cost for the lockdown period, the EBIDTA margins for the Quarter , would have been 12%.
Consolidated Revenue from operations and PAT stood at Rs. 2,969 Cr. and Rs. 58 Cr. respectively for the quarter.
Hero MotoCorp sold a total of 5.65 Lacs units of motorcycles and scooters in the first quarter of Financial Year (April-June) 2020-21. Sequential monthly sales of the Company kept improving during the quarter as markets in several parts of the country gradually re-opened, thereby leading the revival of the domestic two-wheeler sector.
Mr. Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said "The Covid-19 period has been an unprecedented challenge for the automotive industry, as indeed for several other sectors and economies around the world. Hero MotoCorp was quick to begin work on cost control and efficiencies that enabled us to limit the impact of the unprecedented times during the first quarter of the financial year. Cash conservation efforts and rationalization of expenses, along with productivity enhancement measures, have helped us pass through the uncertain period as we now enter the phase of rapid recovery and return of demand. We are already seeing green shoots, and expect them to sustain and get stronger as we move towards the festive season. Our July month sales were more than 95% of pre-covid sales and we do see positive trend moving forward".
With strict safety measures and protocols in place, about 95% of the customer touch points of Hero MotoCorp are fully operational and the company's eight production facilities - six in India and two in global markets have resumed manufacturing.
Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2811.25 as compared to the previous close of Rs. 2773.9. The total number of shares traded during the day was 35852 in over 3594 trades.
The stock hit an intraday high of Rs. 2820 and intraday low of 2748.2. The net turnover during the day was Rs. 99856516.