Hero Motocorp Reports 9% Rise In Profit In Q2 2020

Hero MotoCorp has reported its financial performance for the second quarter (July-September 2020) of the FY’ 2021. 

The Company's Revenue from Operations for the quarter stood at Rs. 9,367 Crore (vs Rs. 7,571 Crs in Q2 FY20) and Profit After Tax (PAT) at Rs. 953 Crore (vs Rs. 875 Crs in Q2 FY20). 

EBIDTA margin for the second quarter was at 13.7% as compared to 3.6% in the first quarter (April-June). 

Consolidated Revenue and PAT stood at Rs. 9,473 Crore and Rs. 964 Crore respectively for the quarter.

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. 

Mr. 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 wellpositioned product portfolio”.