Hero MotoCorp, the world’s largest manufacturer of motorcycle and scooters, reported its financial performance for the first quarter (April-June 2021) of the FY’ 2022.
Riding on sales of 10.25 lakh units of motorcycles and scooters during the quarter despite Covid-19 related disruptions, the company reported revenue from operations of Rs. 5,487 crore (vs. Rs. 2,972 crore in Q1 FY’21). Net profit for the quarter was at Rs. 365 crore (vs. Rs 61 crore in Q1 FY’21), a growth of 496% over the same period previous year. The consolidated revenue from operations stood at Rs. 5,503 crore and net profit of Rs. 256 crore.
In April 2021, Hero MotoCorp 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 – the Centre of Innovation and Technology (CIT), 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 May 17, 2021.
Nearly half of the first quarter FY’22 witnessed significant disruptions triggered by localized lockdowns imposed by various state governments and authorities across the country in the wake of escalating coronavirus cases, thereby restricting movement of logistics and dampening customer sentiments.
Niranjan Gupta, Chief Financial Officer (CFO), 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 bps over the full year of FY21.
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.”