Hero MotoCorp Q4 sales up 4.31%

Hero MotoCorp has reported its sales and financial results for the fourth quarter of FY ’15 (January-March 2015). With sales of 15,75,501 two-wheelers for the period, total turnover  in the quarter stood at Rs 6,793.87 crore, an increase of 4.31% over Rs 6,512.96 crore in the corresponding quarter in the previous fiscal.

Profit before exceptional item and tax stood at Rs 840.76 crore. Profit after Tax (PAT) after exceptional item for the quarter stood at Rs 476.53 crore. This is after an impairment of Rs 155.04 crore (US$ 25 million) of equity investment in Erik Buell Racing. EBR has recently filed for bankruptcy.

In FY2014-15,  Hero MotoCorp sold 66,31,826 units and registered a total turnover of Rs 27,585.30 crore, up 9.14 percent as compared to Rs 25,275.47 crore reported in FY’14.

Commenting on the results, Pawan Munjal, vice-chairman, CEO and MD, Hero MotoCorp, said: “Our technologically refined and performance-driven products have caught the imagination of our customers. Last year, we focused on further strengthening our in-house capabilities. The industry has, however, remained sluggish due to the slowing rural economy on account of poor crop realization and moderating wages in the rural markets. We remain cautiously optimistic in our near to medium term outlook. An overall improvement in the economy and positive market sentiments are required for the industry to get back to the trend of healthy double digit growth.”

Hero MotoCorp has lined up investment of over Rs 3,000 crore in adding capacities and brandbuilding initiatives in domestic and global markets over the next two years. This is in keeping with its goal to expand its global footprint to 50 countries and total annual sales of 12 million units by the year 2020.