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Key takeaways from Hero MotoCorp’s Q3 earnings

Hero MotoCorp posted 4.51% YoY fall in profit at Rs 769.10 crore for December quarter.

ETMarkets.com|
Jan 31, 2019, 08.38 PM IST
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Two-wheeler major Hero MotoCorp on Thursday reported better-than-expected financial numbers for December quarter.

The auto firm posted 4.51 per cent year-on-year fall in profit at Rs 769.10 crore for the quarter ended December 31. Analysts in an ET Now poll were expecting a profit of Rs 750 crore.

Here are the key takeaways from the quarterly numbers:

Firm sold 17,98,905 units
The company sold 17,98,905 two-wheeler units during December quarter. Revenue of the company increased 7.53 per cent YoY to Rs 7,864.82 crore in Q3FY19 over Rs 7,314.21 crore in Q3FY18.

Market situation may improve
The fourth quarter has historically been positive for the company. “We look forward to an improved market situation in the coming months, said Munjal. Hopefully, the upcoming Budget will have enough impetus for the agriculture and social sectors to trigger a positive turnaround in the sentiments,” the company said.

Destini 125 receives good response
Destini 125 - the newly launched scooter from Hero MotoCorp - has received an overwhelming response from customers, while the new premium motorcycle Xtreme 200R has also generated a positive uptick in volumes, the company said. The motorcycle maker has lined-up a slew of exciting product launches in the coming months in its focus segments - premium motorcycles & scooters.

2-wheeler segment has room to grow
The domestic two-wheeler industry has significant headroom to grow, given the penetration of two-wheelers in India is still quite low. “There have been temporary setbacks in the third quarter of the current fiscal on account of multiple factors, leading to higher than normal inventory levels at dealerships,” Chairman, Pawan Munjal, said.

Interim dividend of Rs 55 announced
The board of directors declared an interim dividend of Rs 55 per equity share of Rs 2 each for the financial year 2018-19.

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