Hero MotoCorp’s Q2 net profit up 1.13 percent

Mumbai, Oct 20 (IANS) Two-wheeler major Hero MotoCorp on Tuesday reported an increase of 1.13 percent in its standalone net profit for the second quarter of the current fiscal.

The company’s net profit for the second quarter of the current fiscal stood at Rs.772.06 crore from Rs.763.37 crore registered during the corresponding quarter of the last fiscal.

According to a regulatory filing with the Bombay Stock Exchange (BSE), the company’s total income fell by 1.13 percent in the quarter under review.

The company’s Q2 total income stood at Rs.6,837.09 crore from Rs.6,915.34 crore in the corresponding quarter of 2014-15.

“The quarter saw the beginning of a sales revival and we are cautiously optimistic that this trend will continue in the second half of the fiscal year,” Pawan Munjal, chairman, managing director and chief executive of Hero MotoCorp was quoted in a statement.

“The festive season could lead to positive sentiment in the market, which may help maintain the momentum in the coming months.”

Total sales for the quarter under review receded by 6.95 percent to 1,574,861 units from an off-take of 1,692,523 units during the second quarter of last year.

The company’s EBIDTA (earnings before interest, taxes, depreciation and amortisation) margin for the quarter improved to 15.85 percent from 13.52 percent in the like period of 2014-15.

For the first half (H1) of the current fiscal, the company reported a rise of 14.80 percent in its net profit which stood at Rs.1,522.40 crore from Rs.1,326.13 crore registered during the corresponding period of last fiscal.

However, total sales for the first half fell by 5.48 percent at 3,220,728 units from 3,407,777 units sold during the like period of 2014-15.

The company’s H1 total income was lower by 1.14 percent and stood at Rs.13,792.35 crore from Rs.13,952.18 crore in the corresponding period of last fiscal.

The EBIDTA margin improved to 15.45 percent from 13.49 percent in H1 2014-15.

The company added that it will continued its aggressive product strategy in the upcoming quarter.

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