The country’s largest two-wheeler manufacturer Hero MotoCorp on Thursday reported a 14.05 per cent drop in its net profit at ₹476.53 crore for the fourth quarter ended March 31, 2015, against ₹554.43 crore in the corresponding period in the previous year.

The dip in profit was due to the poor sales during the period against the same period last year. The company reported an impairment of ₹155.04 crore of equity investment in Erik Buell Racing, Inc, of the US.

Hero MotoCorp sold around 15.75 lakh units in January-March this year against more than 15.89 units in the corresponding period last year.

It had acquired a 49.2 per cent stake for $25 million in Erik Buell Racing, which had filed for bankruptcy in 2013, and planned to market its products in the US through Erik Buell’s network.

Hero MotoCorp’s total net income rose by 4.31 per cent to ₹6,793.87 crore during the period against ₹6,512.96 crore in January-March 2014, the company said. EPS for the fourth quarter stood at ₹31.63 against ₹29.19.

“Last year, we focused on further strengthening our in-house capabilities and the results of that are for all to see with products like the Splendor iSmart which has set the bar higher for others to follow,” said Pawan Munjal, Vice-Chairman, Chief Executive Officer and Managing Director.

The industry has, however, remained sluggish due to the slowing rural economy on account of poor crop realisation and moderating wages in the rural markets, he said.

“Going forward, we remain cautiously optimistic in our near to medium term outlook. An overall improvement in the economy and positive market sentiments are required for the industry to get back to the trend of healthy double-digit growth. On our part, we will continue to focus on our strengths and keep providing the best of products to our customers in India and across the globe,” he added.

The company has lined up an investment of over ₹3,000 crore in adding capacities and brand building initiatives in domestic and global markets over the next two years.

This is in keeping with the company’s vision of expanding its global footprint to 50 countries and total annual sales of 12 million units by 2020, the company said.

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