New Delhi:India’s largest two wheeler maker Hero MotoCorp on Friday reported a 22.4% decline in its consolidated profit to INR 747.79 crore in Q2 FY22 as against INR 963.82 crore in Q2 FY21, the company said in a regulatory filing on Friday.
Revenue from operations was at INR 8538.85 crore in the quarter to September 30, 2021, compared to INR 9473.32 crore in the corresponding period last year.
Hero MotoCorp informed that its electric vehicle (EV) project is in the advanced stages and the product will be manufactured at its plant in Chittoor, in Andhra Pradesh. “The plant, aptly called Garden Factory for its eco-friendly and sustainable manufacturing practices, will provide an integrated ecosystem for battery pack manufacturing and testing, vehicle assembly and vehicle end of line testing (EOL),” it said.
The company sold 14.38 lakh units of motorcycles and scooters in Q2 FY22, down 21% from 18.22 lakh units sold in the same period last fiscal.
Positive economic signs, encouraging farm activities and increased need for personal mobility are likely to restart the momentum in the two‐wheeler industry and we expect positive sentiments both in the rural and semi‐urban marketsNiranjan Gupta, CFO, Hero MotoCorp
Niranjan Gupta, chief financial officer (CFO), Hero MotoCorp, said, “Positive economic signs, encouraging farm activities and increased need for personal mobility are likely to restart the momentum in the two‐wheeler industry and we expect positive sentiments both in the rural and semi‐urban markets.”
“Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through the accelerated Leap‐II savings program, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward,” he said.
“The company is taking a comprehensive approach, ranging from research and development to production of green vehicles, which also includes forging strategic collaborations and partnerships,” Gupta added.
On a standalone basis, the two-wheeler maker reported a profit of INR 794.40 crore in Q2 FY22 as against INR 953.45 crore in Q2 FY21.