Hero MotoCorp’s Pawan Munjal to take 20% pay cut following split in Chairman and CEO roles

Hero MotoCorp Chairman Pawan Munjal will take a pay cut of 20% from his fixed salary following the split of Chairman and CEO roles.

Earlier this year, Hero decided to separate the roles of the Chairman & CEO and appoint a CEO for the company. Following this transition, Munjal volunteered to reduce his fixed salary.

Munjal has been accused of forgery and fraud charges in an FIR filed by the Delhi Police recently. The Delhi High Court later stayed the criminal proceedings against Hero MotoCorp and its chairman in the case.

According to the FIR, Hero MotoCorp and its officials had allegedly created fake bills of over Rs 5.94 crore between 2009 and 2010, which were signed and stamped by the company.

The two-wheeler major’s net profit jumped 47% year-on-year to Rs 1,054 crore in the September quarter. The bottomline was higher than the ETNow poll of Rs 983 crore.

Revenue from operations increased 4% to Rs Rs 9445 crore.

EBITDA margins at 14.1% improved by 260 bps over the corresponding quarter previous year, aided by commodity costs, leap savings, and product mix.”Our results for the second quarter as well as the first half of the fiscal reflect our continued financial discipline and prudent capital allocation even as we ensure premiumisation of our portfolio,” said Niranjan Gupta, CEO, Hero MotoCorp.

Input costs for the quarter was Rs 6,481 crore, compared to Rs 6,517 crore a year ago. Sequentially however, it went up from Rs 6,035 crore, prompting the company to undertake price hikes.

The company said the premium range of products, which have been launched across all key models, have been received by the customers very well.

“Our strong margin shape will help us even more in deploying necessary fuel behind growth priorities. The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over next few quarters will be important. However, the medium term outlook for India in general and auto industry in particular appears quite encouraging,” Gupta added.

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