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Updated on: Thursday, August 12, 2021, 10:26 PM IST

Hero MotoCorp reports over four-fold increase in net profit at Rs 256 cr in Q1

PTI
Hero MotoCorp had reported a consolidated net profit of Rs 58 crore in the April-June quarter of 2020-21 fiscal | Photo credit: Facebook

Hero MotoCorp had reported a consolidated net profit of Rs 58 crore in the April-June quarter of 2020-21 fiscal | Photo credit: Facebook

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The country's largest two-wheeler maker Hero MotoCorp on Thursday said its consolidated net profit surged over four-folds to Rs 256 crore for the first quarter ended June 30, riding on the back of robust sales during the period.

The company had reported a consolidated net profit of Rs 58 crore in the April-June quarter of 2020-21 fiscal.

Revenue from operations rose to Rs 5,503 crore in the first quarter as compared with Rs 2,969 crore in the same period of previous fiscal, the two wheeler major said in a statement.

On a standalone basis, the company posted a net profit of Rs 365 crore as against Rs 61 crore in the Q1 of 2020-21 fiscal.

The company sold 10.25 lakh units of motorcycles and scooters during the first quarter despite Covid-19 related disruptions, the company stated.

In April this year, Hero MotoCorp had proactively paused its operations temporarily at all of its manufacturing facilities across the country, including its Global Parts Center (GPC) in Neemrana and its R&D facility - the Centre of Innovation and Technology (CIT), Jaipur due to the second wave of Covid-19 pandemic.

The company had then resumed production at its domestic manufacturing plants in a staggered manner from May 17, 2021.

"The first quarter of this fiscal has been adversely impacted by Covid-19. Despite the challenges posed by the pandemic, the company achieved significant growth in both earnings and profitability compared to the corresponding quarter of the previous fiscal," Hero MotoCorp Chief Financial Officer Niranjan Gupta said.

The company improved its market share in the quarter by more than 200 bps over the full year of FY 21, he added.

Gupta, however, cautioned that the commodity costs continue to rise, thereby impacting the industry margins.

"We have taken judicious and measured pricing decisions, reducing the impact on the customers by offsetting part of the increase through the accelerated Leap-2 saving program," he added.

On business outlook, Gupta noted, "The company remains optimistic about demand over the coming months with the start of the festive season and also a healthy monsoon and encouraging farm activity. With last-mile retail opening up further, we expect numbers to be positive as we move forward." The company aims to build further on its market leadership as it continues to delight customers with superior products and technology, he added.

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Published on: Thursday, August 12, 2021, 10:26 PM IST
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