Mumbai: Two-wheeler major Hero Moto Corp’s standalone net profit for the second quarter of FY22 fell to Rs 794.40 crore on a year-on-year (YoY) basis.
The company had posted a net profit of Rs 953.45 crore for the same quarter last year.
“Riding on a volume of 14.38 lakh units sold during the quarter, the company’s revenue from operations for the quarter stood at Rs 8,453 crore,” the company said in a statement.
“EBIDTA margin for the second quarter was at 12.6 percent and net profit for the quarter was Rs 794 crore. Consolidated revenue for Q2FY22 stood at Rs 8,539 crore and net profit at Rs 748 crore,” the company said. According to Niranjan
Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said that the company 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,” Gupta said.
“Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through accelerated overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward,” Gupta said.
The company said it’s Electric Vehicle (EV) project is in the advanced stages and the product will be manufactured at its plant in Chittoor, in the southern 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),” it added. –