Hero MotoCorp's Q2 net profit vaults 58% to Rs763 crore
16 October 2014
India's top two-wheeler manufacturer Hero MotoCorp today reported a 58 per cent jump in its net profit for the quarter ended 30 September 2014 to Rs763.37 crore on the back of higher volumes.
The Delhi-based company controlled by the Munjal-family posted a 20 per cent jump in net sales in the quarter to Rs6,863.50 crore, while sales volumes rose 19.5 per cent to 1.69 million units.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q2FY15 stood at 13.52 per cent, lower than 14.5 per cent in Q2FY14.
Hero Motocorp said the higher earnings were aided by a stable rupee, increase in other income and the end of quarterly payments to erstwhile Japanese partner Honda for technology transfers.
''With the new stable government at the centre, the sentiment in the entire country has turned positive. The rupee depreciation, which had adversely impacted several sectors, and pulled up the costs of essential commodities, has also more or less stabilised. We will continue to be innovative in tackling any extraneous pressures to protect our margins,'' Pawan Munjal, vice-chairman, MD & CEO of Hero MotoCorp, said.
''We are laying the roadmap for the future at Hero with a strong focus on technology and innovation. While our multi-location technology eco-system is working on the new product line, our customers have given a resounding affirmation to the innovation and technology-improvements on the existing platforms. These numbers bode well for the festive season and we are looking at leveraging this momentum to ensure record retail sales in the month of October,'' he added.
During the quarter Hero launched operations in Columbia through a wholly-owned subsidiary. It is building a $70 million facility having a total capacity of 150,000 units and expected to be operational in mid 2015 in Columbia.
Hero also invested Rs13.75 crore in its the wholly-owned subsidiary HMCL Netherlands BV. The subsidiary would further invest these funds into Hero's Bangladesh joint venture where it has a 55 per cent stake and is setting up a Rs240 crore manufacturing plant with a local partner.