Indian multinational motorcycle and scooter manufacturer, Hero MotoCorp announced its results for the second quarter of FY2021. The Company reported a 9.05 percent rise in the consolidated net profit to Rs 953 crore for the September quarter, driven by robust sales, signaling a gradual revival from the negative impact of the global pandemic.
Operational revenue of the company rose to Rs 9,367 crore during the second quarter thereby, growing by 23.7 percent compared to the year-ago period. In terms of volume, the company reported a growth of 7.7 percent, selling 18.22 lakh units over the same quarter of 2019-20, the company stated in a press release to BSE. Earnings with interest, taxes, depreciation, and amortization added (EBITDA) for the quarter stood at Rs 1,286 crore, compared to Rs 1,101 crore in the previous year, reflecting a 13.7 percent EBITDA margin, which expanded from 3.6 percent in the first quarter of FY21.
Niranjan Gupta, Chief Financial Officer (CFO) at Hero MotoCorp stated that the recovery in demand, credible resumption of supply chain and logistics, cost, and cash management, along with price increase, have helped deliver profitability. He further stated that Hero MotoCorp has recorded significant gains in the market share in the second quarter across various products and geographies and expect it to maintain the lead through its well-positioned product portfolio. The company further expects the momentum to continue into the festive season and has further launched four new variants across motorcycle and scooter segments in this regard.
During the first after-noon hours of trade on Thursday, the stock of Hero MotoCorp was quoted at Rs 2,903.30 per share, down by 1.46 percent or Rs 43 per share on NSE.