Hero MotoCorp Ltd posts Rs. 1019.18 crore consolidated PAT in Q3FY21

HERO MOTOCORP LTD. has reported financial results for the period ended December 31, 2020.

Financial Results (Q3 FY20-21) - QoQ Comparison

The company has reported total income of Rs.10032.61 crores during the period ended December 31, 2020 as compared to Rs.9607.25 crores during the period ended September 30, 2020.

The company has posted net profit / (loss) of Rs.1019.18 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.958.49 crores for the period ended September 30, 2020.

The company has reported EPS of Rs.51.02 for the period ended December 31, 2020 as compared to Rs.47.98 for the period ended September 30, 2020.

Financials	Q3 FY20-21	Q2 FY20-21	% Change
Total Income	₹ 10032.61 crs	₹ 9607.25 crs	4.43%
Net Profit	₹ 1019.18 crs	₹ 958.49 crs	6.33%
EPS	₹ 51.02	₹ 47.98	6.34%

Financial Results (Q3 FY20-21) - YoY Comparison

The company has reported total income of Rs.10032.61 crores during the period ended December 31, 2020 as compared to Rs.7259.39 crores during the period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.1019.18 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.901.81 crores for the period ended December 31, 2019.

The company has reported EPS of Rs.51.02 for the period ended December 31, 2020 as compared to Rs.45.15 for the period ended December 31, 2019.

Financials	Q3 FY20-21	Q3 FY19-20	% Change
Total Income	₹ 10032.61 crs	₹ 7259.39 crs	38.2%
Net Profit	₹ 1019.18 crs	₹ 901.81 crs	13.01%
EPS	₹ 51.02	₹ 45.15	13%

Financial Results (9 Months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.22759.08 crores during the 9 months period ended December 31, 2020 as compared to Rs.23494.96 crores during the 9 months period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.2036.81 crores for the 9 months period ended December 31, 2020 as against net profit / (loss) of Rs.3033.48 crores for the 9 months period ended December 31, 2019.

The company has reported EPS of Rs.101.96 for the 9 months period ended December 31, 2020 as compared to Rs.151.88 for the 9 months period ended December 31, 2019.

Financials	9 Months ended FY20-21	9 Months ended FY19-20	% Change
Total Income	₹ 22759.08 crs	₹ 23494.96 crs	-3.13%
Net Profit	₹ 2036.81 crs	₹ 3033.48 crs	-32.86%
EPS	₹ 101.96	₹151.88	-32.87%

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.

Mr. 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-IIsavings 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 networks globally to sell competitive, high-quality products in the large Mexican market.

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.3440.65 as compared to the previous close of Rs. 3384.4. The total number of shares traded during the day was 144974 in over 9753 trades.

The stock hit an intraday high of Rs. 3514.2 and intraday low of 3404.1. The net turnover during the day was Rs. 497880935.

Source : Equity Bulls

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