Hero MotoCorp's Q2 net profit up 27.74%

Two-wheeler major Hero MotoCorp on Wednesday reported an increase of 27.74 per cent in its standalone net profit for the second quarter (Q2) of the current fiscal.

The company's net profit during the period under review stood at Rs 1,004.22 crore, its highest ever net profit, and up from Rs 786.12 crore earned in the corresponding quarter of the last fiscal.

According to the company, total sales for the quarter under review edged-up by 15.8 per cent to 18,23,498 units from an off-take of 15,74,861 units during the second quarter of last year.

"The highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of our products, and a testimony to our market leadership," Pawan Munjal, Chairman, Managing Director and Chief Executive Officer, Hero MotoCorp was quoted in a statement.

"At the same time, we have also delivered on our commitment of further strengthening our profitability by crossing the threshold Rs 1,000 crore in PAT for the first time in a quarter."

The company's total income from operations which includes gross sales and other operating income rose by 15 per cent in the quarter under review.

The company's Q2 gross turnover stood at Rs 8,448.74 crore from Rs 7,346.47 crore in the corresponding quarter of 2015-16.

The company's EBIDTA (earnings before interest, taxes, depreciation and amortisation) margin during Q2 improved to its highest ever levels to 16.20 per cent from 14.91 per cent in the like period of 2015-16.

The improvement was aided by softer commodities prices and cost control measures.

--IANS

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