Hero MotoCorp Q2 net profit declines 22%; revenue falls 10%
Hero MotoCorp, India’s largest two-wheeler maker, will benefit from the bounce back in rural demand, better exports and electric vehicle launches to aid, even as the Delhi headquartered company witnessed a drop in revenue during July-September quarter.
COVID-19 pandemic induced lockdown has hurt sales of automobile sector while rise in input costs weighed on operations.
Hero MotoCorp on Friday reported a 22% decline in consolidated net profit to Rs 747.79 crore in the second quarter ended on September 30, 2021, impacted by lower sales.
The company, which posted a consolidated net profit of Rs 963.82 crore in the same period last fiscal, said its electric vehicle project is in advanced stages and is gearing up to launch the first product by March 2022.
Consolidated revenue from operations was at Rs 8,538.85 crore as against Rs 9,473.32 crore in the year-ago quarter.
The company sold 14.38 lakh units of motorcycles and scooters in Q2 FY’22, down 21% from 18.22 lakh units sold in the same period last fiscal.
Total expenses stood at Rs 7,640.71 crore in the second quarter this fiscal, down from Rs 8,359.23 crore in the corresponding period a year ago.
Cost of materials consumed were also lower at Rs 6,091.07 crore as against Rs 6,692.38 crore in the year-ago period.
Hero MotoCorp is gearing up to launch the EV by March 2022 from its plant at Chittoor, in Andhra Pradesh. The facility will provide an integrated ecosystem for battery pack manufacturing and testing, vehicle assembly and vehicle end of line testing (EOL).
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