Hero MotoCorp Q2 net profit down 22% at Rs 748 crore; Revenue
The company, which posted a consolidated net profit of Rs 963.82 crore in the same period last fiscal, said its electric vehicle project is in advanced stages and is ready to launch the first product by March 2022.
Hero MotoCorp said in a regulatory filing that consolidated revenue from operations stood at Rs 8,538.85 crore as against Rs 9,473.32 crore in the year-ago quarter.
The company sold 14.38 lakh motorcycles and scooters in the second quarter of FY22, which is 21 per cent lower than the 18.22 lakh units sold in the same period last fiscal.
Total expenditure in the second quarter of the current fiscal stood at Rs 7,640.71 crore, as against Rs 8,359.23 crore in the same period a year ago.
The cost of material consumed also declined to Rs 6,091.07 crore as against Rs 6,692.38 crore in the year-ago period.
Commenting on the quarterly performance, Niranjan Gupta, Chief Financial Officer, Hero MotoCorp said, “Commodity prices, which have been impacting the margins of the industry so far, are showing some signs of moderation as we move forward. Through accelerated Leap-II savings programme, overheads management, and prudent price addition, we have been able to improve our margins sequentially and expect further improvement.”
On the outlook, he said Hero MotoCorp expects demand growth in the coming quarters as the economy continues to recover and recover.
“Positive economic signals, encouraging agricultural activities and increasing need for personal mobility are likely to revive momentum in the two-wheeler industry and we expect positive sentiments in both rural and semi-urban markets,” Gupta said.
Stating that its electric vehicle (EV) project is in advanced stages, the company said it is ready to launch EVs by March 2022.
The product will be manufactured at Hero MotoCorp’s plant in Chittoor, Andhra Pradesh. The facility will provide an integrated ecosystem for battery pack manufacturing and testing, vehicle assembly and vehicle in line testing (EOL).
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)
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