Hero MotoCorp, India’s largest two-wheeler maker, posted weak numbers as both bottom and top line declines, mainly due to weak rural demand, hike in prices and higher cost of raw materials.
“With the economy picking up, we expect the demand for motorcycles and scooters to witness a positive turnaround in the coming months. While concerns related to high input cost remain a challenge, we will continue to monitor the situation and take appropriate measures,” said Niranjan Gupta, CFO, Hero MotoCorp.
Standalone remained at net profit 627 crore for the March quarter, 28% lower than 869 crore in the previous year period.
Revenue from operations also fell 14% 7,422 crore during the fourth quarter.
Hero MotoCorp’s stock closed down 1.06% on Monday 2,480.05 on NSE.
The board of the company has recommended the final dividend of 35 per share subject to the approval of the members.
“With the economy picking up, we expect the demand for motorcycles and scooters to witness a positive turnaround in the coming months. While concerns related to high input cost remain a challenge, we will continue to monitor the situation and take appropriate measures,” said Niranjan Gupta, CFO, Hero MotoCorp.
The company sold 11.9 lakh units of motorcycles and scooters in the January-March period, down 24% year-on-year.
“A normal monsoon forecast is likely to support crops, which is expected to improve cash flow in the rural sector. All these factors are likely to help support a steady recovery in consumer sentiments and market demand. In FY’23 Niranjan Gupta said, “We have launched a number of product launches across various segments with an aim to build our premium portfolio as well as continue premiumization of existing models, which will help us drive growth and profitability.