Hero MotoCorp’s Q4 net profit up 71 percent

New Delhi, May 5 (IANS) Two-wheeler major Hero MotoCorp on Thursday reported a rise of 70.85 percent in its standalone net profit for the fourth quarter (Q4) of 2015-16.

The company’s net profit stood at Rs.814.16 crore for the quarter ended March 31, 2016 from Rs.476.53 crore in the corresponding quarter of 2014-15.

According to the two-wheeler major, its total income from operations increased by 10.57 percent to Rs.7,512.17 crore from Rs.6,793.87 crore for the quarter ended March 31, 2015.

“The improved profit margins were the combined result of the highest-ever quarterly sales of 17,21,240 units and several margin improvement initiates taken during the period,” the company said in a statement.

The company’s sales during the quarter under review rose by 9.25 percent to 1,721,240 units from 1,575,501 units sold in the corresponding period of 2014-15.

For the full financial year 2015-16, the company’s standalone net profit grew by 31.3 percent to Rs.3,132.37 crore up from Rs.2,385.64 crore.

The company’s total income from operations in the period under review increased by 3.67 percent to Rs.28,599.30 crore from Rs.27,585.30 crore for 2014-15.

The two-wheeler manufacturer’s sales in 2015-16 marginally increased to 6,632,322 units from 6,631,826 units.

“The completion of FY’16 marked five years of sustained leadership in our bold new solo journey that we embarked upon in 2011,” said Pawan Munjal, chairman, managing director and chief executive, Hero MotoCorp in the statement.

“In addition to consolidating our market leadership in terms of volumes, we have also worked on making Hero MotoCorp a more profitable company.”

The two-wheeler manufacturer further said that it remains cautiously optimistic for 2016-17.

“The industry hopes for a good monsoon, which may help market sentiments to improve towards the second half of this fiscal,” Munjal said.

In addition, the company announced a final dividend of 1,600 percent at Rs.32 per share of face value of Rs.2 for the financial year ended March 31, 2016.

“This along with the interim dividend of 2,000 percent (Rs 40/- per share) aggregates to an annual dividend of 3,600 percent (Rs 72/- per share),” the statement added.

–IANS

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