Hero Motocorp Q1 results: Net profit plunges 95% to Rs 61 crore; revenue drops 63%
The country’s top two wheeler maker had posted a net profit of Rs 1,257.34 in the same quarter a year ago.
By ETMarkets.com | Updated:
PTI
Hero Motocorp said on Thursday its standalone net profit for the June quarter plunged 95.12 per cent to Rs 61.31 crore
The country’s top two wheeler maker had posted a net profit of Rs 1,257.34 in the same quarter a year ago.
An ET Now poll had estimated the company to report a net profit of Rs 85 crore.
The company’s revenue from operations dropped 63 per cent to Rs 2,971.54 crore from 8,030.27 crore a year ago.
It sold 5.65 lakh two-wheelers during the quarter, down 69.34 per cent from 18.43 lakh a year ago.
“Delivering a positive bottom line, despite only 25 per cent capacity utilization, reflects the resilience of the portfolio and ability to optimizecosts and improve productivity,” the company said in a press release.
The company said sequential monthly sales kept improving during the quarter as markets in several parts of the country gradually re-opened, thereby leading the revival of the domestic two-wheeler sector.
"Hero MotoCorp was quick to begin work on cost control and efficiencies that enabled us to limit the impact of the unprecedented times during the first quarter of the financial year,” said CFO Niranjan Gupta.
“Cash conservation efforts and rationalization of expenses, along with productivity enhancement measures, have helped us pass through the uncertain period as we now enter the phase of rapid recovery and return of demand,” he added.
Gupta said the company is already seeing green shoots, and expect them to sustain and get stronger as towards the festive season. He pointed that the company’s July sales were more than 95 per cent of pre-covid sales and the company expects to see positive trend moving forward.
The company’s market share in the quarter stood at 34.6 per cent, a gain of 333 basis points (bps) on year-on-year basis.
The country’s top two wheeler maker had posted a net profit of Rs 1,257.34 in the same quarter a year ago.
An ET Now poll had estimated the company to report a net profit of Rs 85 crore.
The company’s revenue from operations dropped 63 per cent to Rs 2,971.54 crore from 8,030.27 crore a year ago.
It sold 5.65 lakh two-wheelers during the quarter, down 69.34 per cent from 18.43 lakh a year ago.
“Delivering a positive bottom line, despite only 25 per cent capacity utilization, reflects the resilience of the portfolio and ability to optimizecosts and improve productivity,” the company said in a press release.
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The company said sequential monthly sales kept improving during the quarter as markets in several parts of the country gradually re-opened, thereby leading the revival of the domestic two-wheeler sector.
"Hero MotoCorp was quick to begin work on cost control and efficiencies that enabled us to limit the impact of the unprecedented times during the first quarter of the financial year,” said CFO Niranjan Gupta.
“Cash conservation efforts and rationalization of expenses, along with productivity enhancement measures, have helped us pass through the uncertain period as we now enter the phase of rapid recovery and return of demand,” he added.
Gupta said the company is already seeing green shoots, and expect them to sustain and get stronger as towards the festive season. He pointed that the company’s July sales were more than 95 per cent of pre-covid sales and the company expects to see positive trend moving forward.
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The company’s market share in the quarter stood at 34.6 per cent, a gain of 333 basis points (bps) on year-on-year basis.
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