Hero MotoCorp Ltd Q4FY21 consolidated PAT at Rs. 880.94 crore

HERO MOTOCORP LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.8758.01 crores during the period ended March 31, 2021 as compared to Rs.10032.61 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.880.94 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.1019.18 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.44.08 for the period ended March 31, 2021 as compared to Rs.51.02 for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 8758.01 crs	₹ 10032.61 crs	-12.7%
Net Profit	₹ 880.94 crs	₹ 1019.18 crs	-13.56%
EPS	₹ 44.08	₹ 51.02	-13.6%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.8758.01 crores during the period ended March 31, 2021 as compared to Rs.6490.92 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.880.94 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.604.63 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.44.08 for the period ended March 31, 2021 as compared to Rs.30.27 for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 8758.01 crs	₹ 6490.92 crs	34.93%
Net Profit	₹ 880.94 crs	₹ 604.63 crs	45.7%
EPS	₹ 44.08	₹ 30.27	45.62%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.31517.09 crores during the 12 months period ended March 31, 2021 as compared to Rs.29985.88 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.2917.75 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.3638.11 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.146.04 for the 12 months period ended March 31, 2021 as compared to Rs.182.15 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 31517.09 crs	₹ 29985.88 crs	5.11%
Net Profit	₹ 2917.75 crs	₹ 3638.11 crs	-19.8%
EPS	₹ 146.04	₹182.15	-19.82%

Dr. Pawan Munjal - Chairman & CEO, Hero MotoCorp, "The Financial Year (FY) 2021 was one of the most challenging periods for the entire world due to the outbreak of the Coronavirus pandemic. While a late recovery towards the second half of the FY'21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in Covid-19 cases.

Despite the challenges, Hero MotoCorp grew its market share in both motorcycles and scooters. We also grew our presence in the premium segment that would be further strengthened with our strategic partnership with Harley-Davidson.

With the fresh surge in Covid-19, Hero MotoCorp is keeping a close watch on the rapidlyevolving situation, as we take steps to protect our employees and operations, while also initiating relief measures to aid the efforts initiated by our organization, and various governments and institutions.

Going forward, we continue to remain cautiously optimistic on the demand for personal mobility despite the challenging circumstances. In line with our commitment to sustainability, Hero MotoCorp will continue to strengthen efforts towards driving in green mobility which will see us launch our first electric vehicle in this financial year. Our EV journey has further been augmented with our recent partnership with Gogoro, the developer of the world's largest battery-swapping network."

Mr. Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, "The Covid-19 pandemic and resultant restrictions have been posing an unprecedented challenge for the Indian economy and the auto industry. In 2020, as the restrictions were lifted, Hero MotoCorp managed to contain the effects of the pandemic on its business and financial performance. Thanks to strategic initiatives such as a strict discipline on expenses and prioritization of projects, we succeeded in substantially reducing general overhead costs and capex. Our tight working capital management has further helped in ensuring the much needed liquidity buffer in these times. Outstanding teamwork and timely measures helped us put the company on a stable course of recovery and eventual growth.

"As the coronavirus pandemic continues to pose a threat to lives and livelihood, our efforts in this quarter would be aimed at protecting people and their families. We expect normalcy to kick-in from the second quarter with a likely slowdown in Covid-19 cases and higher vaccination levels. Due to the evolving pandemic situation, we are remaining prepared to address any eventuality to be able to stabilize our business in the remaining months of the quarter.

"A healthy monsoon and harvest season and a rebound in GDP should aid the industry's recovery from Q2 onwards. The company also expects a significant growth in its global business with a renewed thrust on developing key-overseas markets."

In keeping with its commitment to the safety and welfare of its people and to break the chain of the spread of Coronavirus, Hero MotoCorp had proactively halted the plant operations temporarily in a staggered manner from April 22-May 1.

In view of the rapid escalation in the spread of Covid-19 across the country, the company decided to extend the shutdown till May 9, 2021. The plant operations will resume on May 10. All corporate offices of the company are in Work from Home (WFH) mode and a very small number of colleagues are allowed in offices on rotation basis for the continuity of essential services.

The company had also initiated Covid-19 vaccination drive across the organization, including its permanent and contractual employees. Hero MotoCorp will bear the cost of the vaccination drive for its workforce. The Company is also facilitating similar vaccination initiative across its group companies such as Hero FinCorp, Hero Future Energies, Rockman Industries, Hero Electronix and AG Industries.

In order to ensure the safety of people across its ecosystem, Hero MotoCorp is also working closely with its dealers and supply chain partners to facilitate similar vaccination for their employees.

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2913 as compared to the previous close of Rs. 2787. The total number of shares traded during the day was 69871 in over 5703 trades.

The stock hit an intraday high of Rs. 2922 and intraday low of 2804.6. The net turnover during the day was Rs. 201562533.

Source : Equity Bulls

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