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Hit by high commodity prices, the country’s largest two-wheeler manufacturer Hero MotoCorp has reported a net profit of ₹909 crore in the first quarter ended June 30, a bit down year-on-year (YoY) compared with ₹914 crore in the corresponding period last year.
The impact on the net profit in the quarter has been also on account of the tax benefits coming to an end in the fourth quarter at the company's manufacturing facility at Haridwar, Hero MotorCorp said in a statement.
However, total income rose by 2 per cent YoY to ₹8,925 crore during the quarter (₹8,753 crore). The company has made record sales of around 21.07 lakh units (18.54 lakh), up 14 per cent .
During the quarter, the company has invested ₹3.93 crore as part of capital contribution in subsidiary company HMC MM Auto Ltd, taking cumulative investment to ₹30 crore.
“The Indian economy continues to grow in the face of global headwinds from several fronts. However, the industry has been adversely impacted by the volatility in commodity prices driven by global trends,” said Pawan Munjal Chairman, Managing Director and Chief Executive Officer.
But, despite these challenges, the industry will maintain the growth momentum during the rest of the fiscal, with consumption expected to remain high on the back of a normal monsoon and the upcoming festival season, he said.
Ather Energy
“At Hero MotoCorp, we are geared up to ride the positive momentum with new premium motorcycles and scooters, lined up for launch in the coming months,” Munjal added. Meanwhile, the board also approved the investment of ₹130 crore through compulsorily convertible debentures in Ather Energy Private Ltd.
“The investment is subject to execution of definitive documents and completion of certain conditions customary to a transaction of this nature,” the company said.
Ather Energy is a Bengaluru-based electric two-wheeler start-up.
Apart from Hero MotorCorp, the company is backed by investors like Tiger Global and Flipkart founders Sachin and Binny Bansal.
It had recently announced that it plans to invest ₹130 crore in the next four years to set up charging infrastructure for electric vehicles across major cities in the country.
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