Hero MotoCorp, the world’s largest two-wheeler manufacturer, reported its financial performance for the second quarter (July-September 2019) of the financial year 2020.
The company’s revenue from operations for the quarter stood at Rs. 7,571 crores vs. Rs. 9,091 crores in Q2 FY’l 9 and Profit before Tax (PBT) before exceptional item at Rs. 1,098 crores vs. Rs. 1,448 crores in Q2 FY’l 9. Profit after Tax (PAT) stood at Rs. 875 crores vs. Rs. 976 crores in Q2 FY’19. EBIDTA margin for the quarter stood at 14.5%. Consolidated revenue and PAT stood at Rs. 7,661 crores and Rs. 884 crores respectively for the quarter.
The company’s revenue from operations for half year stood at Rs. 15,601 crores vs. Rs. 17,901 crores in previous year. PBT after exceptional item stood at Rs. 2,912 crores vs. Rs. 2,791 crores in previous year. PAT stood at Rs. 2,132 crores vs. Rs. 1,885 crores in previous year. Consolidated revenue and PAT for the half year ended September 2019 was Rs. 15,847 crores vs. Rs. 2,140 crores in the previous year.
Mr. Niranjan Gupta, Chief Financial Officer, Hero MotoCorp, said: “Our retail sales during the ongoing festive season have been quite steady so far, thanks to the new motorcycles and scooters that we have launched recently, and our slew of innovative schemes for customers. We hope to keep the momentum during the upcoming Dhanteras and Diwali festivals. We have launched five new products – including three new premium motorcycles and two scooters – in the first five months of the financial year, at a time when companies are holding back new product launches and investments. The initial market response to these products – the XPulse twins and the Xtreme 200S motorcycles and the Maestro Edge 125 Fl – India’s first scooter with Fuel Injection technology – and the Pleasure+ 110 scooter – has been quite encouraging.”
”Growth of the industry is driven by first time customers. We have therefore, aggressively pursued this segment of customers through various innovative financing options, both in terms of affordability and convenience. This has helped us to expand our customer base during the ongoing festive season. We are also gearing up for the market launch of our first BS-VI motorcycle soon after the festive season, which will mark the commencement of the sequential transition to our BS-VI range over the next few months,” Mr. Sanjay Bhan, Head – Sales, Aftersales and Parts, Hero MotoCorp.
Highlights of the quarter (July-September 2019)
Diversity and inclusion
The company continued to move forward on its ‘Diversity’ journey and surpassed a significant milestone by inducting its 1000th woman employee.
Customer engagement initiatives
Hero MotoCorp achieved a new benchmark in customer service in the two-wheeler industry, by commencing delivery of new motorcycles and scooters to customers at their doorstep.
Xtracks Experience too continued, reaching Chennai and Bengaluru. The one-of-a-kind ‘XTracks’ provides riders an exciting opportunity to experience the country’s most accessible adventure bike – all new XPulse 200 – in a specially-curated thrilling off-road zone.
Furthermore, the company announced special benefits for its customers in the flood affected regions of Kerala, North Karnataka & South Maharashtra, to ensure seamless mobility for people in these regions and to help accelerate the ongoing rehabilitation initiatives.
Achievement in the field of sports
Dr. Pawan Munjal was inducted into the Asia Pacific Golf ‘Hall of Fame’. It is the highest honor in the Asia Pacific Golf industry that was bestowed upon one of India’s most illustrious captains of industry and a great supporter of sports around the globe.
Hero MotoSports Team Rally emerged victorious at the 2019 Pan Africa Rally. This was the team’s first Rally win for the season. Team Rider Joaquim Rodrigues ‘JRod’ was crowned the winner.
Corporate Social Responsibility (CSR) initiatives
Hero MotoCorp partnered with Swarna Bharat Trust to set-up a world-class Training Centre in Andhra Pradesh. Honorable Vice-President M. Venkaiah Naidu inaugurated the facility.
Hero MotoCorp also organized a massive tree plantation drive in Dehradun district of Uttarakhand – with over 35,000 families planting over 2.1 lakh trees – which has been verified by the ‘Asia Book of Records’ and ‘India Book of Records’ and has been officially registered as a new record.