Hero MotoCorp Q2 net profit dips 3 pc to Rs 976 crore

The country's largest two-wheeler maker Hero MotoCorp Tuesday reported a 3.38 per cent dip in its standalone profit-after-tax to Rs 976.28 crore for the September quarter, mainly on account of higher expenses.

The company had posted a net profit of Rs 1,010.49 crore for the corresponding period of the previous fisccal, Hero MotoCorp said in a filing to BSE.

Revenue from operations for the quarter under review stood at Rs 9,090.94 crore as against Rs 8,371.74 crore in the same period previous fiscal, it added.

Total expenses for the said quarter stood at Rs 7,866.15 crore as against Rs 7,053.63 crore in the same period a year ago.

 

During the quarter, the company sold 21,34,051 units of two-wheelers as against 20,22,805 units in the year-ago period.

Commenting on the performance, Hero MotoCorp Chairman, MD and CEO Pawan Munjal said: "I am pleased to share that Hero MotoCorp, backed by sustained demand for its popular range of motorcycles and scooters, continued its sales growth in Q2FY'19 compared to the corresponding quarter in the previous fiscal."

Marking the company's re-entry into the premium motorcycle segment, it launched the Xtreme 200R in the second quarter, he added.

"With the upcoming festive season in India, the Xtreme 200R will help us consolidate our market leadership," Munjal said.

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 per cent, he added.

"We at Hero MotoCorp have created sturdy financial structures and robust market demand for our iconic brands, and have been consistently reporting sequential growth quarter-after-quarter. We expect to carry the momentum forward during the rest of the year, and navigate through the cost challenges to deliver profitable and sustained growth," Munjal said.

Shares of Hero MotoCorp today closed at Rs 2,890 per scrip on the BSE, up 0.23 per cent from its previous close.