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    Hero MotoCorp Q2 results: Net profit rises 9% to Rs 953 crore; revenue climbs 24%

    Synopsis

    The auto major’s total revenue from operations climbed by 23.73 per cent to Rs 9,367.34 crore, from Rs 7,570.70 crore a year ago.

    hero motocorpETAuto
    Analysts in an ET Now poll had projected a net loss of Rs 990 crore for the company.
    NEW DELHI: Hero MotoCorp on Wednesday reported a standalone net profit of Rs 953.45 crore in the quarter ended September, registering an increase of 8.99 per cent. The company reported a profit of Rs 874.80 crore in the year ago quarter.

    Analysts in an ET Now poll had projected a net loss of Rs 990 crore for the company.

    The auto major’s total revenue from operations climbed by 23.73 per cent to Rs 9,367.34 crore, from Rs 7,570.70 crore a year ago.

    “The earnings in the second quarter of FY21 reflects a strong performance, signaling a gradual revival from the negative impact of the global pandemic. The recovery in demand to pre-Covid levels, credible resumption of supply chain and logistics, cost and cash management, along with judicious price increase, has helped deliver profitability,” said Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp.

    Ebitda margin for the second quarter was at 13.7 per cent as compared to 3.6 per cent in the first quarter
    (April-June). The key earnings reflect a good performance based on improving economy and strong product line-up, combined with rationalization of expenses and extensive cash-preservation measures, the company said.

    “Based on early estimates, we expect the momentum to continue into the festive season which has started well for us. To further drive the festive cheer, we have launched four new variants across motorcycle and scooter segments. We have registered significant gains in market share in Q2 across products and geographies and expect to maintain the lead through our well-positioned product portfolio,” Gupta said.

    During the quarter, the company launched Hero Xtreme 160R. It also made an additional investment of Rs 84 crore ($11million) in e-scooter maker Ather Energy, taking up its shareholding in the company to 34.58 per cent, up from 31.27 per cent.

    The management believes the challenging economic environment is headed for a recovery on the back of various initiatives by the government, especially those directed towards rural and semi-urban regions of the country.

    During the quarter, the company launched Hero Xtreme 160R. It also made an additional investment of Rs 84 crore ($11 million) in e-scooter maker Ather Energy, taking up its shareholding in the company to 34.58 per cent, up from 31.27 per cent.

    The management believes the challenging economic environment is headed for a recovery on the back of various initiatives by the government, especially those directed towards rural and semi-urban regions of the country.





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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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