Hero MotoCorp reports 4.9% fall Q4 net profit

Hero MotoCorp reports 4.9% fall Q4 net profitPersistent slowdown in the two-wheeler segment and cut-throat competition forced Hero MotoCorp to suffer a 4.9 per cent decline in net profit at Rs 574.23 crore in the final quarter of FY2012-13.

Sales slipped 3 per cent to 15.27 lakh units in the January to March quarter, from 15.72 lakh units in the corresponding period of the previous financial year.

It was the third quarterly in a row in which the country's biggest two-wheeler manufacturer reported decline in profit. In the quarters ended September and December, the company suffered declines of 27 per cent and 20 per cent in profit, respectively.

For analysts, however, Hero MotoCorp's quarterly results were better than expected. A poll of analysts had projected a decline of 14 per cent in profit to Rs 519 crore for the company's fourth quarter.

Commenting on the results, Mumbai-based Emkay Global said, "Hero MotoCorp reported a good set of results led by lower input costs. Ebitda margin for the quarter was ahead of estimate at 13.8%."

Pawan Munjal, CEO & managing director of the company, blamed weak macroeconomic sentiment and downcast consumer confidence for the decline in the company's profit.

Speaking on the topic, Mr. Munjal added that he was cautiously optimistic about the company's growth prospects in the coming quarter.

On Friday, Hero MotoCorp also announced its decision to increase prices of its bikes in the range of Rs 500 to Rs 1,500 with immediate effect.