Hero motocorp reports 14% drop in q4 profit, annual net up 13 %
Hit by an impairment charge of Rs 155 crore, Hero MotoCorp, the countryâ€™s largest two-wheeler manufacturer by volume, reported a 14 per cent slump in net profit for the quarter ended March, 2015. Stand-alone net profit for the quarter was Rs 476.5 crore, against Rs 554 crore in the corresponding period of the previous year. After adjusting for the impairment charge, the profit would have come higher than the year-ago figure, but it would have still been lower than the Bloomberg consensus estimate of Rs 636.7 crore. Revenue from sales rose nearly four per cent to Rs 6,695 crore, and was ahead of estimates of Rs 6,580 crore. Net profit for the year ended March rose over 13 per cent to Rs 2,385.6 crore while net sales increased nine per cent to Rs 27,350 crore. The impairment of Rs 155 crore is on account of equity investment in Erik Buell Racing (EBR). US-based EBR, in which Hero MotoCorpâ€™s subsidiary had acquired a 49.2 per cent stake in 2013, has filed for bankruptcy.