HERO MOTOCORP Announces Quarterly Results (4QFY20); Net Profit Down 15.0%

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HERO MOTOCORP Announces Quarterly Results (4QFY20); Net Profit Down 15.0%
Thu, 11 Jun

HERO MOTOCORP has announced its results for the quarter ended March 2020. Here is a detailed performance review of the same:

HERO MOTOCORP Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-19*
3
Dec-19*
3
Mar-20*
QoQ ChangeYoY Change
Net SalesRs m78,85069,96762,384-10.8%-20.9%
Other incomeRs m1,6421,8221,695-7.0%3.2%
TurnoverRs m80,49271,78964,079-10.7%-20.4%
ExpensesRs m68,15659,57855,785-6.4%-18.2%
Gross profitRs m10,69310,3906,599-36.5%-38.3%
DepreciationRs m1,5022,0371,747-14.2%16.3%
InterestRs m225941-31.4%85.4%
Profit before taxRs m10,81110,1156,506-35.7%-39.8%
TaxRs m3,5081,311299-77.2%-91.5%
Profit after taxRs m7,3038,8046,207-29.5%-15.0%
Gross profit margin%13.614.810.6
Effective tax rate%32.413.04.6
Net profit margin%9.112.39.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 20.9% on a year-on-year (YoY) basis. The expenses were down by 18.2% YoY during the same period.
  • The company's operating profit declined by 38.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 10.6% in 4QFY20 as against 13.6% in 4QFY19.
  • Depreciation charges increased by 16.3% and finance costs increased by 85.4% YoY, respectively.
  • Other income increased by 3.2% YoY during the quarter.
  • Net profit for the quarter declined by 15.0% YoY. Net profit margins during the quarter increased from 9.1% in 4QFY19 to 9.7% in 4QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 10.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 6.4% QoQ during the same period.
  • The company's operating profit declined by 36.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 10.6% in 4QFY20 as against 14.8% in 3QFY19.
  • Net profit for the quarter declined by 29.5% QoQ, while net profit margins declined from 12.3% in 3QFY19 to 9.7% in 4QFY20.

To see how HERO MOTOCORP has performed over the last eight quarters,please visit here.

Know More: Is India's Economic Recovery Sustainable?

HERO MOTOCORP Share Price Performance

Over the last one year,HERO MOTOCORP share price has moved down from Rs 2,775.9 to Rs 2,323.7, registering a Loss of Rs 452.2 or around 16.3%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 14,774.8 (up 0.3%). Over the last one year it has moved down from 18,594.0 to 14,774.8, a loss of 3,819 points (down 20.5%).

Overall, the S&P BSE SENSEX is down 14.2% over the year.

Current Valuations

At the current price of Rs 2,323.7, the price to earnings (P/E) ratio of HERO MOTOCORP stands at 12.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.5 times.

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