Hero MotoCorp trades flat after Q2 results

Shares of Hero MotoCorp were almost flat at Rs 2,900 at 11:01 IST on BSE.

Net profit of Hero MotoCorp declined 3.39% to Rs 976.28 crore on 8.59% rise in net sales to Rs 9090.94 crore in Q2 September 2018 over Q2 September 2017. The result was announced after market hours yesterday, 16 October 2018.

Earnings before interest, tax, depreciation, & amortization (EBITDA) for the quarter stood at Rs 1379 crore, reflecting 15.2% EBITDA margin (vs. 15.6% in Q1 June 2018 and 17.4% in the corresponding period last year).

The company reported volumes of 21,34,051 units in Q2 September 2018, a growth of 5.5% over corresponding period.

Hero MotoCorp's Chairman, Managing Director & Chief Executive Officer, Pawan Munjal, said the company continued its sales growth in Q2 September 2018 compared to the corresponding quarter in the previous fiscal.

Marking the company's re-entry into the premium motorcycle segment, Hero MotoCorp launched the Xtreme 200R in the second quarter. With the upcoming festive season in India, the Xtreme 200R will help the company consolidate its market leadership.

While the Global economy has been stable and firm in the last quarter, the India story continues to fascinate the world, with an expected growth of more than 7%. Hero MotoCorp has created sturdy financial structures and robust market demand for its iconic brands, and has been consistently reporting sequential growth quarter-after-quarter. The firm expects to carry the momentum forward during the rest of the year, and navigate through the cost challenges to deliver profitable and sustained growth, he added.

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