Hero MotoCorp reported a 9.9 percent year-on-year (YoY) drop in net profit for the September quarter to Rs 716 crore on Thursday due to a struggling global economy. The final figure was lower than a CNBC-TV18 poll estimate of Rs 729 crore.
In the previous fiscal year, the country's largest two-wheeler manufacturer reported a net profit of Rs 794 crore.
Revenue surged by 7.4 percent YoY to Rs 9,075.4 crore, exceeding the projected Rs 8,453 crore. The company had reported Rs 8,453.40 crore in revenue the same quarter last fiscal.
#2QWithCNBCTV18 | Hero MotoCorp #Q2 earnings
▶️ Net profit down 9.9% at ₹716.1 cr vs ₹794 cr (YoY)▶️ Revenue up 7.4% at ₹9,075.4 cr vs ₹8,453 cr (YoY)Here’s more 👇 pic.twitter.com/shkH44iTag— CNBC-TV18 (@CNBCTV18Live) November 3, 2022
The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter amounted to Rs 1,038 crore, down 2.6 percent from Rs 1,066.4 crore the previous year, while its EBIT margin declined 120 basis points to 11.4 percent from 12.6 percent.
Commenting on the quarterly performance, Niranjan Gupta, Chief Financial Officer (CFO), said, "The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over next few quarters will be important."
"Our results reflect our continued financial discipline, focus on cost savings and capital allocation on one hand, while ensuring premiumisation of our portfolio on the other. The Xtec Variants which have been launched across all key models have been received by the customers very well. We will continue to build presence in premium segment through multiple launches over next few quarters," he added.
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