Hero MotoCorp announces Q2FY21 results; reports 9 per cent PAT growth

Hero MotoCorp announced its results for the second quarter of FY2021, reporting a 9.05 per cent rise in the consolidated net profit to Rs 953 crore for the September quarter on the back of robust sales, signalling a gradual revival from the negative impact of the global pandemic.

Revenue from operations rose to Rs 9,367 crore during the second quarter thereby, growing by 23.7 per cent compared to the year-ago period. In terms of volume, the two-wheeler major reported a growth of 7.7 per cent, selling 18.22 lakh units over the same quarter of 2019-20, the company stated in a press release to BSE.

EBITDA for the quarter stood at Rs 1,286 crore (compared to Rs 1,101 crore in Q2FY20), reflecting a 13.7 per cent EBITDA margin, which expanded from 3.6 per cent in the first quarter of FY21.

Speaking on the announcement, Niranjan Gupta, Chief Financial Officer (CFO) at Hero MotoCorp stated that the recovery in demand, credible resumption of supply chain and logistics, cost & cash management, along with price increase, have helped deliver profitability. He further stated that Hero MotoCorp has registered significant gains in the market share in the second quarter across various products & geographies and expect it to maintain the lead through its well-positioned product portfolio.

The company expects the momentum to continue into the festive season, which started well, and has further launched four new variants across motorcycle & scooter segments in this regard.

At 12 pm on Thursday, the stock of Hero MotoCorp was trading at Rs 2,918.35 per share, down by 0.93 per cent or Rs 27.45 per share on BSE, against a 0.03 per cent decline in the benchmark index. Its 52-week high is recorded at Rs 3,393.85 and the 52-week low is Rs 1,475 on BSE.