Hero MotoCorp clocks 36 pc rise in Q1, net profit at Rs 1,123 crore
The company said that the higher profit was driven by strong sales, recovery in the rural market and new launches.
Hero MotoCorp on Wednesday announced that the company will hike two-wheeler prices with effect from January 1, 2021 to partially offset the impact of rising in input costs.
The company said that a steady rise in commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals is the reason behind this decision.
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“We have already accelerated our savings programme under the ‘Leap-2’ umbrella, and will continue to work on mitigating the impact, with the objective to reduce the burden on the customers and protect our margins,” the company said.
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“In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by upto Rs 1,500, with effect from January 1, 2021. The increase will vary across models, and the exact quantum will be communicated to our dealers in due course.”
Hero MotoCorp is the second company after Mahindra & Mahindra (M&M), firm that said it will hike prices of its entire range of passenger and commercial vehicles from January 2021 to partially offset the impact of rise in input costs.
Post the announcement, automaker’s shares were trading at 3,126.35, up by 0.27 per cent at 12.38 p.m. Earlier in the day, it had touched a high of Rs 3,156.
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