Hero MotoCorp Ltd. reported its highest quarterly profit growth in two years, surpassing analyst estimates.
Net profit of the country’s largest two-wheeler maker rose 34 percent year-on-year to Rs 967 crore in the quarter ended March, according to its filing with the stock exchanges. That’s in line with the Bloomberg consensus estimate of Rs 958 crore.
Revenue rose 23.7 percent on a yearly basis to Rs 8,564 crore led by its best quarterly volume growth in more than six years. The company sold 20.01 lakh units between January and March, an increase of 16.3 percent from the corresponding quarter in the previous year.
“The company posted record sales numbers throughout the year, the first ever global 2-wheeler company to record well over 7.5 million unit sales in the period and registered highest-ever monthly sales in India,” Pawan Munjal, chairman and managing director And chief executive officer at Hero MotoCorp said in the press release.
The operational performance was also matched estimates. Earnings before interest, tax, depreciation and amortisation rose 2.6 percent to Rs 1,370 crore as compared to the same quarter last year. The operating margin expanded to 16 percent from 13.8 percent during this period.
Shares of Hero MotoCorp erased gains and fell as much as 2.5 percent to Rs 3,640 apiece after the earnings announcement. The stock snapped five straight quarters of gains and declined 6.4 percent during January-March period, compared to a 9.9 percent decline in NSE Nifty Auto Index.