Two-wheeler market leader Hero MotoCorp on Thursday reported a 44 per cent jump in consolidated net profit at Rs 885.28 crore for the fourth quarter ended March 31, riding on robust sales.
The company, which has re-appointed Pawan Munjal as its chairman and CEO for a term of five years with effect from October 1, 2021, subject to shareholders' approval, had posted a consolidated net profit of Rs 613.81 crore in the same period a year ago.
Consolidated revenue from operations during the period under review stood at Rs 8,689.74 crore as against Rs 6,333.89 crore in the corresponding period a year ago, Hero MotoCorp said in a regulatory filing.
The company said it sold a total of 15.68 lakh units of two-wheelers in the fourth quarter, registering a growth of 18.5 per cent compared to 13.23 lakh units in Q4 of FY20.
For the fiscal ended March 31, 2020, the company said its consolidated net profit was at Rs 2,936.05 crore as against Rs 3,659.41 crore in FY20, down 20 per cent.
Consolidated revenue from operations for 2020-21 was at Rs 30,959.19 crore as against Rs 29,255.32 crore in 2019-20.
Hero MotoCorp Chairman and CEO Pawan Munjal said, "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, he said 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," Munjal added.
On the current situation due to the second wave of the pandemic, he said,"With the fresh surge in COVID-19, Hero MotoCorp is keeping a close watch on the rapidly evolving 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." Hero MotoCorp said it had proactively halted plant operations temporarily in a staggered manner from April 22-May 1, which has been further extended till May 9, 2021 in view of the rapid escalation in the spread of COVID-19 across the country.
"The plant operations will resume on May 10. All corporate offices of the company are in Work from Home mode and a very small number of colleagues are allowed in offices on rotation basis for the continuity of essential services," the company added.
On the outlook, Munjal said,"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." He further said,"Our EV journey has further been augmented with our recent partnership with Gogoro, the developer of the world's largest battery-swapping network."