The share price of Hero MotoCorp, the largest two-wheeler manufacturer, rose almost 4 percent to hit a record high of Rs 3,575.00 apiece in early trade on Friday after the company reported strong December quarter earnings, beating Street estimates on all fronts.

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The auto major posted 23.2 percent jump in Q3FY21 net profit at Rs 1,084.5 crore from Rs 880.4 crore in the year-ago period.

Revenue during the quarter increased 39.7 percent to Rs 9,775.8 crore from Rs 6.996.7 crore in the corresponding period of last year. The company registered its highest-ever revenue driven by 19.7 percent sales volume growth at 18.45 lakh units.

On the operational front, EBITDA rose 36.1 percent to Rs 1,413.6 crore from Rs 1,039 crore, while EBITDA margin contracted by 30 bps to 14.5 percent from 14.8 percent, YoY.

Hero MotoCorp declared an interim dividend of Rs 65 per share and a special dividend of Rs 5 per share.

On January 21, 2021, Hero MotoCorp surpassed the monumental milestone of 100 million units in cumulative production. The 100 millionth motorcycle, the Xtreme 160R, was rolled out of the company’s manufacturing facility in Haridwar, in the northern Indian hill state of Uttarakhand, the company said in an exchange filing.

“The company has been able to drive profitable growth through improvement in market shares, acceleration of Leap-IIsavings initiatives, continued control on overheads, and cash flow management. We continue to build on our strong portfolio with the launch of special edition variants to commemorate the milestone of 100 Million units in cumulative production,” said Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp.

Going forward, the company expects input costs to remain under pressure due to the rising prices of commodities and fuel.

“The price increase on our range of products that we undertook from January 1 will partially offset these cost pressures. We will continue to focus on driving cost savings, and take judicious price increases if & when necessary,” Gupta said.

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First Published:Feb 5, 2021 11:46 AM IST