Hero MotoCorp Q4 Results Update

On 3rd May, Hero MotoCorp announced its quarterly results for the last quarter of FY2022. And on Wednesday, the Hero MotoCorp share price declined by 2.89 percent.

Key Highlights:

Q4 FY2022:

- In Q4FY22, Hero MotoCorp sold 11.9 Lakh units of motorcycles and scooters.

- Net Revenue from operations stood at Rs.7,422 Crore

- EBITDA for the quarter stood at Rs.828 Crore and EBITDA Margin stood at 11.2%

- Profit Before Tax for the quarter stood at Rs.802 Crore

- The company reported its Profit after Tax at Rs.627 Crore.

- Consolidated Revenue and PAT stood at Rs.29,551 Crore and Rs.2,329 Crore respectively

FY2022:

- For FY2022, 49.4 lac units of motorcycles and scooters sold in FY’22 by Hero MotoCorp

- Net Revenue from operations for FY2022 stood at Rs. 29,245 Crore

- EBITDA stood at Rs.3,369 Crore

- Profit Before Tax for the year ended stood at Rs.3250 Crore

- Net Profit After Tax was reported at Rs.2473 Crore.

In FY 2022, Hero MotoCorp for the first time surpassed the landmark 300,000 units in volume sales in a single financial year in its global markets outside of India, registering a growth of more than 57% over the corresponding period in FY 2021. The new R4 strategy (Revitalize, Recalibrate, Revive and Revolutionize) has significantly bolstered the Company’s operations, product portfolio, and services bouquet in its global business. 

Over the past few years, Hero MotoCorp has significantly enhanced its global operations both in terms of volumes and presence. There is now a strong focus on further expanding its presence in markets such as Colombia, Peru, Argentina, and Mexico in Latin America; Kenya, Uganda, and Tanzania in East Africa; Nigeria in West Africa; and Bangladesh and Nepal in Asia.

Mr. Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, “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. The forecast of a normal monsoon is likely to aid the crops, which in turn is expected to improve cash flows in rural sector. All these factors are likely to help in a steady recovery in consumer sentiments and market demand. In FY’23, we have lined up multiple product launches in different segments with an aim to continue building our premium portfolio as well as premiumization of existing models, which will help us deliver growth and profitability.”

The company declared a dividend at 1750% i.e. Rs.35 per share for a face value of Rs.2 per equity share. This dividend together with the Interim dividend aggregates to Rs.95 per equity share at 4750%.

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