Companies

Hero MotoCorp Q2 net up 9% at ₹964 crore

Our Bureau New Delhi | Updated on October 28, 2020 Published on October 28, 2020

FILE PHOTO: Employees of Hero Motocorp   -  REUTERS

Country's largest two-wheeler manufacturer Hero MotoCorp on Wednesday reported a consolidated net profit of ₹964 crore for the second quarter ended September 30, up nine per cent as compared with ₹884 crore in corresponding period last year.

Total income of the company during the quarter also rose to ₹9,607 crore, up 23 per cent as against ₹7,825 in the July-September quarter 2019.

The key earnings reflect a good performance based on improving economy and strong product line-up, combined with rationalisation of expenses and extensive cash-preservation measures, the company said.

During the quarter, the company has invested ₹84 crore as part of capital contribution in associate company -- Ather Energy taking cumulative investment to ₹414.58 crore. The company issued 8,481 equity shares of ₹2 each and allotted under the Employee Incentive Scheme- 2014.

The company sold 18.22 lakh units sold in the second quarter, a growth of around eight per cent over the corresponding quarter in the previous fiscal.

“The earnings in the second quarter of this financial year 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 and cash management, along with judicious price increase, has helped deliver profitability," Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said.

The challenging economic environment is headed for a recovery on the back of various initiatives by the government, especially those directed towards rural and semi-urban regions of the country, he said.

"Based on early estimates, we expect the momentum to continue into the festive season which has started well for us. To further drive the festive cheer we have launched four new variants across motorcycle and scooter segments. We have registered significant gains in market share in the second quarter across products and geographies and expect to maintain the lead through our wellpositioned product portfolio," he added.

Shares of Hero MotoCorp closed at ₹2,945.80 apiece on the BSE on Wednesday, up 1.14 per cent from the previous close.

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Published on October 28, 2020
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