Hero MotoCorp has reported growth in quarterly profit and revenue, for the second quarter of FY 2020-21, as demand for entry-level motorcycles picked up after a lull during the lockdown period due to COVID-19. In the period from July to September, 2020, Hero MotoCorp's revenue from operations stood at Rs. 9,367 crore, a 23.7 per cent growth from Rs. 7,571 crore in the same period a year ago. Hero's two-wheeler sales volumes grew by 7.7 per cent in the quarter over the corresponding period in the previous fiscal, and accounted for 18.22 lakh units in the period this year. India's leading two-wheeler manufacturer reported a standalone net profit of Rs. 953.45 crore in the quarter ended September 2020, registering an increase of 8.99 per cent.
Also Read: Hero MotoCorp Registers Highest 2020 Monthly Sales In September
Hero's newest motorcycle is the 160 cc Hero Xtreme 160R
Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said "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 & cash management, along with judicious price increase, has helped deliver profitability. 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.
"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".
Also Read: Hero MotoCorp To Manufacture & Market Harley-Davidson Bikes
The Hero Splendor+ is India's highest selling motorcycle
Earnings Before Interest, Tax, Depreciation, & Amortisation (EBITDA) for the Quarter stood at Rs. 1,286 cr (vs Rs 1101 Crs in Q2 FY'20) reflecting 13.7 per cent EBITDA margin. During the quarter, the company launched Hero Xtreme 160R. It also made an additional investment of Rs 84 crore ($11million) in electric scooter manufacturer Ather Energy, taking up its shareholding in the company to 34.58 per cent, up from 31.27 per cent. In October, Hero MotoCorp announced a licensing agreement with Harley-Davidson under which Harley-Davidson bikes, merchandise, apparel, spares and service will be handled by Hero MotoCorp in India. Hero will also manufacture and market Harley-Davidson branded bikes in India, possibly lower displacement Harleys. More details are awaited on that partnership.
