Hero MotoCorp Q3 net profit rises 4% at Rs 8 billion on higher sales

Hero MotoCorp

Impacted by input costs, country's biggest two-wheeler maker Hero MotoCorp reported an increase of 4 per cent in its net profit for the October-December quarter. Profit for the quarter stood at Rs 8.05 billion as against Rs 7.72 billion in the corresponding quarter of previous year.

The company's revenue from operations grew 15 per cent to Rs 73.05 billion. It sold 1.7 million units during the quarter, registering growth of 16 per cent over corresponding quarter of last year when demonetisation had impacted sales. EBIDTA margin for the quarter stood at 15.9 per cent even as commodity cost increases and other expenses impacted financial performance, the company said.

Commenting on the results, CMD and CEO Pawan Munjal said it is important to mention that the company significantly grew on all key performance parameters revenue, profit and EBIDTA during the quarter, bucking the several headwinds on the commodities front.

Automakers are struggling to post strong profit growth during the current year owing to increase in prices of input costs, particularly metals. Hero's rival Bajaj Auto last week reported a four per cent growth in consolidated profit for the third quarter even though revenue increased 16 per cent. Maruti Suzuki also reported a single digit growth of three per cent in profit for the third quarter. "Commodity prices have been hardening and its impact is visible in third quarter. One can expect a stronger impact in the fourth quarter performance," a Maruti executive said after the results.