Hero Motocorp registered net profit of Rs 967.4 crore during March 2018 quarter, which was up by 34.78% from Rs 717.75 crore in the corresponding period of the previous year.  Q4FY18 net profit also witnessed growth of 20.11% versus net profit of Rs 805.43 crore in the preceding quarter. With this, the company surpassed analysts estimates as a Bloomberg poll had estimated Hero’s net profit at Rs 958 crore in Q4FY18. 

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Are key takeaways from the financial performance. 

FY18

Riding on its highest-ever sales of 7,587,154 units in a financial year (FY), the Company registered standalone revenue from operations (net of excise duty) of Rs 32,230.49 Crore, as compared to Rs 28,500.46 Crore; a growth of 13.1%. 

Hero MotoCorp delivered standalone profit after tax (PAT) ‘FY18 of Rs 3,697.36 Crore versus  Rs 3377.12 Crore and EBIDTA margin at 16.4% versus 16.3% in the previous year.

Consolidated FY18 revenue grew by 6.83% to Rs 33,100.94 crore as against Rs 30,983.66 crore in the previous fiscal FY17. On the other hand, FY18 PAT surged by 4.96% to Rs 3,722.17 crore compared to Rs 3,546.30 crore a year ago same period. 

New Products 

  • Unveiled India’s first 200cc adventure motorcycle
  • ‘XPulse’ at Auto Expo 
  • Forayed into 125cc scooter segment with unveiling of ‘Maestro Edge 125’ & ‘Duet 125’ at Auto Expo 
  • Unveiled ‘Xtreme 200R’ to strengthen its presence in the premium motorcycle segment  Launched the new ‘Passion PRO’, ‘Passion XPRO’ and ‘Super Splendor’ to augment leadership in 100-125cc motorcycle segments

Sales Milestone - New Global heights

  • First two-wheeler company in the world to register two million sales (20,22,805 units) in a quarter (Jul’17-Sep’17) 
  • First two-wheeler company to surpass the ‘seven lakh sales mark’ in any month (720,739 unit sales in Sep’17) 
  • Registered highest-ever monthly sales achieved by an automobile company in India (730473 unit sales in Mar’18) 
  • Registered record retail sales of over two million units during the festive period
  • Recorded highest ever single-day retail sales of over three lakh vehicles on Dhanteras

Expansion of Manufacturing Facilities 

  • Commenced the construction of its eighth world-class manufacturing facility in Chittoor, Andhra Pradesh 
  • Commenced commercial production at its second manufacturing facility outside India, in Bangladesh 

Electric Vehicles

Pawan Munjal, Chairman, Managing Director & Chief Executive Officers, Hero Motocorp said, “Hero MotoCorp, a company strongly driven by customer preference and technological innovation, recognised the growing future environmental demands ahead of its times, and thus have made strategic investments in the electric vehicles segment. Development is underway on the strategic priorities of engaging with the external ecosystem, including start-ups in a meaningful way.” 

Munjal added, “As part of this focus, Hero MotoCorp has made an investment of Rs. 201 crore in Ather Energy to acquire about 30% equity. Ather will soon start retailing its smart electric scooter S340.”

Dividend 

The company’s board has made recommendation of final dividend subject to approval of members 2000% viz. Rs 40 per equity share of Rs 2/- each for the financial year 2017-18. The dividend, if declared at the ensuing AGM, will be paid by August 23, 2018. 

Hero’s Annual General Meeting (AGM) will be held on July 24, 2018.