India’s largest two wheeler manufacturer has launched Rs. recorded a net profit of 686 crore in the third quarter of FY 2022 (October to December 2021).
see photosHero MotoCorp’s profit after tax declines by 36.7 per cent to Rs. 686 crore
Hero MotocorpIndia’s largest two-wheeler maker has reported a 36.7 per cent decline in net profit for the October to December 2021 quarter. The company reported a profit after tax (PAT) of ₹686 crore for the quarter as against ₹1,084 crore in the corresponding quarter of the previous financial year. Hero MotoCorp attributed lower gains due to the impact on sales due to rise in commodity prices along with lower demand due to the pandemic. Revenue from operations for the same period is reported at ₹7,883 crore, while earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter is reported at ₹960 crore.
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Lower demand due to the pandemic, and rise in commodity prices have been attributed to lower than expected net profit in Q3 FY2222.
“The current financial year has seen the domestic two-wheeler industry hit by the twin challenge of soft demand due to the pandemic and margin squeeze due to sharp commodity cost inflation. Our continued focus on savings programs combined with prudent price hikes has offset the impact on customers. As well as margins. With the rapid easing of the third wave and a complete reopening of all sectors of the economy in the coming weeks, including the hospitality sector, education sector, etc., we are expecting a very broad economic recovery. and expect increased consumer confidence,” said Niranjan Gupta, Chief Financial Officer, Hero MotoCorp.
“The recently announced Union Budget, with continued support to the rural and MSME sector along with increase in capital expenditure, augurs well for the FY ’23 demand scenario in general and the two-wheeler industry in particular. Commodity cost pressures are expected to gradually correct the supply imbalance, part of which is evident in softening precious metal and steel prices. We will continue to accelerate our savings program, premium within brands, and where Will increase the prices there if necessary.”
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The company sold 12.92 lakh units of motorcycles and scooters in the quarter under review, of which Hero’s global business grew by 16 per cent, contributing 61,000 units to exports. Hero MotoCorp is getting ready to launch its first electric two-wheeler, which will be manufactured at the company’s manufacturing facility in Chittoor, Andhra Pradesh. Through investments and partnerships with brands such as Ather Energy and Gogoro Inc., Hero MotoCorp is also focusing on building the EV ecosystem from product to technology to sales and service, customer care, operations and innovation.
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