Hero MotoCorp Q2 net profit surges 9% to Rs 964 cr on robust sales

Hero MotoCorp on Wednesday reported a 9.05 per cent rise in consolidated net profit to Rs 963.82 crore for the September quarter on the back of robust sales.

The country's largest two-wheeler maker had posted a net profit of Rs 883.78 crore during the July-September period of the previous fiscal.

Revenue from operations rose to Rs 9,473.32 crore during the second quarter, as against Rs7,660.60 crore in the year-ago period, Hero MotoCorp said in a statement.

During the September quarter, the two-wheeler major sold 18.22 lakh units, a growth of 7.7 per cent over the same quarter of 2019-20.

"The earnings in the second quarter of FY21 reflects a strong performance, signaling a gradual revival from the negative impact of the global pandemic," Hero MotoCorp Chief Financial Officer (CFO) Niranjan Gupta said.

The recovery in demand to pre-COVID levels, credible resumption of supply chain and logistics, cost and cash management, along with judicious price increase, have helped deliver profitability, he added.

"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," Gupta noted.

Based on early estimates, the company expects the momentum to continue into the festive season which has started well for it, he added.

To further drive the festive cheer, the company has launched four new variants across motorcycle and scooter segments, Gupta said.

"We have registered significant gains in market share in the second quarter across products and geographies and expect to maintain the lead through our well positioned product portfolio," he added.

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