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.
Two-wheeler maker Hero MotoCorp on Wednesday reported a 9 per cent rise in its net profit to Rs 953 crore on a standalone basis for the quarter ended September 2020. It had posted the profit after tax (PAT) for the for the corresponding period of the previous fiscal at Rs 875 crore.
The revenue from operations for the quarter rose by 23.4 per cent to Rs 9,367 crore from Rs 7,571 crore earned during the previous fiscal.
The company sold 18.22 lakh units in the quarter under review, against 16.91 lakh units sold in the year-ago period.
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According to the company, the key earnings reflect a healthy performance based on improving economy and strong product line-up, combined with rationalisation of expenses and extensive cash-preservation measures.
“The earnings in the second quarter of FY21 reflects a strong performance, signalling a gradual revival from the negative impact of the global pandemic,” said Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp.
“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.”
“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 added.
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