On a consolidated basis, Hero MotoCorp's net profit dropped 22.4% to Rs 747.79 crore on a 9.9% decline in net sales to Rs 8,538.85 crore in Q2 September 2021 over Q2 September 2020.
On a sequential basis, Hero MotoCorp's consolidated net profit surged 191.58% to Rs 747.79 crore on a 55.17% jump in net sales to Rs 8,538.85 crore in Q2 September 2021 over Q1 June 2021.
The two-wheeler sold 14.38 lakh units of motorcycles and scooters in Q2 FY22, growing 40.4% sequentially as against Q1 FY22. Earnings Before Interest, Tax, Depreciation, & Amortization (EBITDA) for the quarter stood at Rs 1,066 crore , reflecting a 12.6% EBITDA margin and a sequential improvement of 320 bps over Q1 FY22.
The company's Electric Vehicle (EV) project is in the advanced stages and the product will be manufactured at its plant in Chittoor, in the southern Indian state of Andhra Pradesh. The plant will provide an integrated ecosystem for Battery Pack Manufacturing and Testing, Vehicle Assembly and Vehicle End of Line Testing (EOL).
Niranjan Gupta, the Chief Financial Officer (CFO) of Hero MotoCorp, said, "Hero MotoCorp expects a build‐up in demand over the coming quarters as the economy continues to show recovery and improvement. Positive economic signs, encouraging farm activities and increased need for personal mobility is likely to restart the momentum in the two‐wheeler industry and we expect positive sentiments both in the rural and semi‐urban markets. Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through accelerated Leap‐II savings program, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward."
"In keeping with its strategic vision ‐ Be The Future of Mobility', Hero MotoCorp is steadily progressing on the path to carbon neutrality and sustainability and is investing in this transformation. The company is taking a comprehensive approach, ranging from research and development to production of green vehicles, which also includes forging strategic collaborations and partnerships," he added.
Hero MotoCorp expanded the touch points and service centers for Harley-Davidson customers in India with 14 full-fledged dealerships and seven authorized service centers across the country. Overseas, the firm also started retail sales in the key market of Mexico.
Shares of Hero MotoCorp advanced 2.78% to Rs 2,757.75 on BSE. Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters.
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