Hero MotoCorp's net profit falls to Rs 794 cr in Q2FY22

The net profit for quarter 2 of the financial year 2020-21 stood at Rs 953.45 crore, indicating a fall in the net profit on a year-on-year (YoY) basis. The company said that its revenue from operations for quarter 2 of FY22 stood at Rs 8,453 crore and it had sold 14.38 lakh units during the Q2FY22.

Hero MotoCorp Limited has reported a fall in their net profit for the second quarter of the fiscal year 2021-22. The company recorded a net profit of Rs 794.40 crore in this quarter. 

The net profit for quarter 2 of the financial year 2020-21 stood at Rs 953.45 crore, indicating a fall in the net profit on a year-on-year (YoY) basis.

Advertisement

The company said that its revenue from operations for quarter 2 of FY22 stood at Rs 8,453 crore and it had sold 14.38 lakh units during the Q2FY22.

Also Read | SpiceJet's Q2FY22 standalone net loss sequentially narrows to Rs 561.7 cr

Advertisement

"EBIDTA margin for the second quarter was at 12.6 per cent and net profit for the quarter was Rs 794 crore. Consolidated revenue for Q2FY22 stood at Rs 8,539 crore and net profit at Rs 748 crore."

According to Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said that the company expects a build-up in demand over the coming quarters as the economy continues to show recovery and improvement.

Advertisement

"Positive economic signs, encouraging farm activities and increased need for personal mobility is likely to restart the momentum in the two-wheeler industry and we expect positive sentiments both in the rural and semiaurban markets."

"Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through accelerated 'Leap-II' savings program, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward."

Advertisement

The company said its Electric Vehicle (EV) project is in the advanced stages and the product will be manufactured at its plant in Chittoor, in the southern Indian state of Andhra Pradesh.

Also Read | Base effect, heavy rains ease India's September industrial output growth on sequential basis

Advertisement

"The plant will provide an integrated ecosystem for 'Battery Pack Manufacturing' and 'Testing, Vehicle Assembly and Vehicle End of Line Testing' (EOL)," it added.

Advertisement