Hero MotoCorp's net dips 30% in Q4
Hero MotoCorp recently informed that its consolidated profit after tax (PAT) declined by 30% to ₹621 crore for the fourth quarter ended March 2022 on account of lower sales. The Splendor-maker had previously informed managed a PAT of ₹885 crore in the same period of 2020-21 fiscal.
Hero's revenue from operations stood at ₹7,497 crore as against ₹8,690 crore in the last quarter of the 2020-21 fiscal, the company has informed in a regulatory filing.
Trending CarsFind More Cars
The company sold 11.9 lakh units of two-wheelers in the last quarter of FY22. This is a drop of 24% from 15.68 lakh units in the corresponding period a year-ago.
For the 2021-22 fiscal, Hero MotoCorp has reported a consolidated PAT of ₹2,329 crore, down 21% from ₹2,936 crore in 2020-21. The company's revenue from operation dipped to ₹29,551 crore from ₹30,959 crore in FY21.
"With the economy picking up, we expect the demand for motorcycles and scooters to see a positive turnaround in the coming months. While concerns related to high input costs continue to remain a challenge, we will keep monitoring the situation and take judicious measures as appropriate," Hero MotoCorp CFO Niranjan Gupta noted.
The forecast of a normal monsoon is likely to aid the crops, which in turn is expected to improve cash flows in the rural sector. Also Hero plans to introduce a range of new products and model launches in the market later this year, he added.
"All these factors are likely to help in a steady recovery in consumer sentiments and market demand," Gupta stated. He added, "In the coming months, the company will be able to drive profitable growth through the combination of key strategic initiatives such as acceleration of Leap-II savings program to offset the higher commodity prices and input costs and cash flow management."