New Delhi: Hero MotoCorp on Wednesday reported a 27.74 per cent increase in net profit at Rs 1,004.22 crore for the fiscal second quarter that ended on September 30, 2016, riding on its best-ever quarterly sales.
The company had posted a net profit of Rs 786.12 crore for the corresponding period last fiscal year, the two-wheeler market leader said in a filing to the BSE.
Total income from operations in the quarter under review stood at Rs 8,448.74 crore as against Rs 7,346.47 crore in the corresponding period last fiscal year – an increase of 15 per cent.
The company posted its highest-ever quarterly volume sales during the period at 18,23,498 units, as against 15,74,861 units – an increase of 15.78 per cent.
Commenting on the performance, Hero MotoCorp chairman, managing director and chief executive officer Pawan Munjal said, “The second quarter of this fiscal has been a defining phase in the journey of our young brand. The highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of our products, and a testimony to our market leadership.”
He further said that the company has also delivered on its commitment in further strengthening profitability by crossing the threshold Rs 1,000 crore in PAT for the first time in a quarter.
On the outlook, Mr Munjal said the domestic market has seen a revival in the past two quarters due to an above-average monsoon and positive consumer sentiment.
“The trend is expected to continue through the year and likely to result in double-digit growth for the industry. In the global markets, however, the industry continues to face headwinds due to volatile business environment driven by continued weakness in crude prices and sharp depreciation of local currencies,” he added.
Shares in Hero MotoCorp ended 1.92 per cent day higher at Rs 3,421.55 apiece on the BSE, whose benchmark Sensex index finished down 0.91 per cent.
PTI