The company also reported a 39 per cent growth in revenue from operations to Rs 8,686 crore, which was above analysts’ estimates.
“While a late recovery towards the second half of the FY21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in Covid-19 cases,” said Pawan Munjal, chairman and chief executive officer at Hero MotoCrop.
The company’s board also recommended a final dividend of Rs 25 per share for the financial year ended March and a special dividend of Rs 10 per share. The special dividend has been declared to mark the achievement of historic milestone of achieving 100 Million cumulative production of two wheelers, the company said.
The two-wheeler maker’s topline and bottomline performance during the quarter was to a large extent aided by the low base of the year-ago quarter, which was affected by the national lockdown due to Covid-19 pandemic.
“Despite the challenges, 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 said.
The company’s operating performance in the quarter was strong as earnings before interest, tax, depreciation and amortization nearly doubled on-year to Rs 1,211 crore, whereas EBITDA margin stood at 13.9 per cent.
Despite the ongoing second Cocid-19 wave and multi-state lockdowns, the company’s outlook was optimistic as it expects some normalization from the September quarter. “We expect normalcy to kick-in from the second quarter with a likely slowdown in Covid-19 cases and higher vaccination levels,” said chief financial officer Niranjan Gupta.
A healthy monsoon and harvest season and a rebound in GDP should aid the industry’s recovery from September quarter onwards, Gupta said. “The company also expects a significant growth in its global business with a renewed thrust on developing key overseas markets,” he added.
Shares of Hero MotoCorp ended 4.7 per cent higher at Rs 2,918.4 on the National Stock Exchange on Thursday.