The two-wheeler major reported a 496% jump in net profit to Rs 365.44 crore on 84.7% rise in net sales to Rs 5,487 crore in Q1 FY22 over Q1 FY21.
The two-wheeler maker's profit before tax stood at Rs 484 crore in Q1 FY22, sharply higher than Rs 79.49 crore posted in Q1 FY21. EBITDA for the Q1 FY22 stood at Rs 515 crore compared with Rs 108 crore posted in Q1 FY21. The company's EBITDA margin stood 9.4% in Q1 FY22.On the volume front, Hero MotoCorp sold 10.25 lakh units of motorcycles and scooters in Q1 FY22, registering a growth of 81% over the corresponding quarter in the previous fiscal. In April 2021, the company proactively paused its operations temporarily at all of its manufacturing facilities across the country, including its Global Parts Center (GPC) in Neemrana and its R&D facility in Jaipur due to the second wave of COVID-19 pandemic. The company resumed production at its manufacturing plants in India in a staggered manner from 17 May 2021.
Niranjan Gupta, CFO of Hero MotoCorp said, "The first quarter of this fiscal has been adversely impacted by Covid-19. Despite the challenges posed by the pandemic, Hero MotoCorp achieved significant growth in both earnings and profitability compared to the corresponding quarter of the previous fiscal. The company improved its market share in the quarter by more than 200 basis points over the full year of FY 21. The commodity costs continued to rise, thereby impacting the industry margins. We have taken judicious and measured pricing decisions, reducing the impact on the customers by offsetting part of the increase through the accelerated Leap-2 saving program. The company remains optimistic about demand over the coming months with the start of the festive season and also a healthy monsoon and encouraging farm activity. With last-mile retail opening up further, we expect numbers to be positive as we move forward. Hero MotoCorp aims to build further on its market leadership as we continue to delight customers with superior products and technology."
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in a year.
Shares of Hero MotoCorp were trading 0.76% lower at Rs 2,761.45 on BSE.
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