[ad_1]
Two-wheeler market leader Hero MotoCorp on Friday reported a 22 per cent 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, Hero MotoCorp said in a regulatory filing.
The company sold 14.38 lakh units of motorcycles and scooters in Q2 FY’22, down 21 per cent 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.
Commenting on the quarterly performance, Hero MotoCorp Chief Financial Officer Niranjan 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 Leap-II savings programme, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward.”
On the outlook, he 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,” Gupta added.
Stating that its electric vehicle (EV) project is in the advanced stages, the company said it is gearing up to launch the EV by March 2022.
The product will be manufactured at Hero MotoCorp’s 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), it added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
