The two-wheeler major's standalone net profit jumped 9% to Rs 953.45 crore on 23.7% increase in net sales to Rs 9,367.34 crore in Q2 September 2020 over Q2 September 2019.
Standalone profit before tax (PBT) soared 20.4% to Rs 1,249.95 crore in Q2 September 2020 as against Rs 1,037.74 crore in Q2 September 2019. Current tax expense jumped 18.7% year-on-year to Rs 255.27 crore in Q2 September 2020. The Q2 result was declared after market hours yesterday, 28 October 2020.
Volumes grew 7.7% to 18.22 lakh units sold in Q2 FY21 over Q2 FY20. EBITDA jumped 16.80% to Rs 1286 crore in Q2 September 2020 as against Rs 1101 crore in Q2 September 2019. EBITDA margin stood at 13.7% in Q2 FY21, higher than 3.6% in Q1 FY21 and lower than 14.5% in Q2 FY20.
On a consolidated basis, net profit jumped 9.1% to Rs 963.82 crore on 23.7% rise in net sales to Rs 9,473.32 crore in Q2 September 2020 over Q2 September 2019.
The key earnings reflect a good performance based on improving economy and strong product line-up, combined with rationalization of expenses and extensive cash-preservation measures, the company said.
Niranjan Gupta, the chief financial officer (CFO) of Hero MotoCorp, said: "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."
"The challenging economic environment is headed for a recovery on the back of various initiatives by the government, especially those directed towards rural and semi-urban regions of the country. 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. We have registered significant gains in market share in Q2 across products and geographies and expect to maintain the lead through our well- positioned product portfolio," he added.
During the quarter, Hero MotoCorp made an additional investment of Rs 84 crore ($11 million) in Ather Energy, taking up its shareholding in the company to 34.58% stake from 31.27% stake. Hero MotoCorp has been a part of Ather's growth story since 2016, when it first invested as a part of Series B funding.
With regards to COVID-19, the group's operations and financial results in Q1 June 2020 were adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown in various geographies. The operations have resumed with requisite precautions in place ever since.
Shares of Hero MotoCorp fell 0.54% to Rs 2,930 on BSE. 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.
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