Hero MotoCorp Q2 net profit up 9%
Hero MotoCorp share fell nearly 2% in early trade today despite the world’s largest two-wheeler maker reporting a 8.99% increase in standalone profit during the September quarter. Share of Hero MotoCorp slipped 1.93% to Rs 2,888 against previous close of Rs 2,945 on BSE.
Sales recuperated from the dismal lows of first quarter of this fiscal. The two-wheeler major sold 18.22 lakh units during the quarter ended September 30, 2020 against 5.65 lakh units during June quarter this fiscal.
Hero MotoCorp sold 16.91 lakh units during September quarter last fiscal.
Rise in sales led to higher profit in Q2 of the current fiscal.
It has posted a net profit of Rs 953.45 crore during the quarter under review against Rs 874.80 crore in the corresponding quarter last year and significantly higher than Rs 61.31 crore in the June quarter of this fiscal.
Revenue from operations for the second quarter of this fiscal stood at Rs 9,367.34 crore, growing 23.7% from Rs 7,570.70 crore in the year-ago period.
At the operating level, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 16.8 percent y-o-y to Rs 1,286.4 crore, but margin contracted to 13.7% during the quarter, from 14.54% in Q2FY20.
The earnings in the second quarter of FY21 reflects a strong performance, signaling a gradual revival from the negative impact of the global pandemic. The recovery in demand to pre-COVID levels, credible resumption of supply chain and logistics, cost & cash management, along with judicious price increase, has helped deliver profitability.
Hero MotoCorp expect the momentum to continue into the festive season which has started well. To further drive the festive cheer, it has launched four new variants across motorcycle and scooter segments.
Hero has registered significant gains in market share in Q2 across products and geographies and expects to maintain the lead through well positioned product portfolio.
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