Two-wheeler maker Hero MotoCorp on October 28 reported a 9 percent year-on-year (y-o-y) growth in standalone profit for the September quarter 2020, supported by revenue, but lower other income restricted growth.
Standalone profit increased to Rs 953.45 crore during the quarter, compared to Rs 874.8 crore in same period last fiscal.
Revenue in grew by 23.7 percent (y-o-y) to Rs 9,367.34 crore in the quarter ended September 2020, with 7.7 percent growth in volume.
Hero sold 18.22 lakh units in the September quarter, against 16.91 lakh units sold in the year-ago period.
"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," Niranjan Gupta, Chief Financial Officer, 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," he added.
Hero has registered significant gains in market share in Q2 across products and geographies and expects to maintain the lead through well positioned product portfolio, Gupta said.
At the operating level, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 16.8 percent y-o-y to Rs 1,286.4 crore, but margin contracted to 13.7 percent during the quarter, from 14.54 percent in Q2FY20.
Numbers were largely in line with analysts' estimates. Profit was estimated at Rs 955 crore on revenue of Rs 9,309 crore and EBITDA was expected at Rs 1,308 crore, as per the average of estimates of analysts' polled by CNBC-TV18.