India’s largest two-wheeler manufacturer, Hero Motocorp recorded INR 865 crore Profit After Tax (PAT) up by 39% in Q4FY21 when compared to INR 621 crore in Q4 FY20, the company said in a regulatory filing to BSE.
The EBITDA margin for the quarter stood at 13.9%. Consolidated revenue and PAT stood at INR 8,690 crore and INR 885 crore respectively for the quarter.
“The financial year 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 FY21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in COVID-19 cases,” said Pawan Munjal, Chairman & CEO, Hero Motocorp.
“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,” he added.
The company sold a total of 15.68 lakh units of two-wheelers during Q4 of FY21, registering a growth of 18.5% over the corresponding quarter in the previous year. The company had sold 13.23 lakh units in Q4 of FY20.
The company has driven profitable growth by combining key strategic initiatives such as the acceleration of the Leap-II savings programme to offset the higher commodity prices and input costs.
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 prioritisation of projects, we succeeded in substantially reducing general overhead costs and CAPEX.”
He added, “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.”
The board of directors approved the reappointment of Pawan Munjal as the Chairman and CEO of Hero Motocorp for a term of five years, with effect from October 1, 2021.