Hero MotoCorp has reported a 39 per cent year-on-year increase in net profit to Rs. 865 crore for the January to March 2021 quarter. The world's largest manufacturer of two-wheelers by volume also reported a 39 per cent growth in revenue from operations to Rs. 8,686 crore in the fourth quarter. During the period, Hero MotoCorp despatched 15.68 lakh units of motorcycles and scooters, registering a growth of 18.5 per cent over the corresponding quarter in the previous year. In the fourth quarter of FY2020, Hero had sold 13.23 lakh two-wheelers.
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The Hero Splendor is India's highest-selling motorcycle
"The Financial Year (FY) 2021 was one of the most challenging periods for the entire world due to the outbreak of the Coronavirus pandemic. While a late recovery towards the second half of the FY'21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in Covid-19 cases. Despite the challenges, Hero MotoCorp grew its market share in both motorcycles and scooters. We also grew our presence in the premium segment that would be further strengthened with our strategic partnership with Harley-Davidson," said Dr. Pawan Munjal, Chairman & CEO, Hero MotoCorp.
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Dr. Pawan Munjal, who was conferred The Visioneer Award at the 2021 carandbike awards, says the company remains cautiously optimistic on demand to pick up later in the year
"With the fresh surge in Covid-19, Hero MotoCorp is keeping a close watch on the rapidly-evolving situation, as we take steps to protect our employees and operations, while also initiating relief measures to aid the efforts initiated by our organization, and various governments and institutions," added Munjal.
"Going forward, we continue to remain cautiously optimistic on the demand for personal mobility despite the challenging circumstances. In line with our commitment to sustainability, Hero MotoCorp will continue to strengthen efforts towards driving in green mobility which will see us launch our first electric vehicle in this financial year. Our EV journey has further been augmented with our recent partnership with Gogoro, the developer of the world's largest battery-swapping network," Munjal said.
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Hero will be increasingly looking at key overseas markets in the coming months
According to Niranjan Gupta, Chief Financial Officer of Hero MotoCorp, said he expects normalcy to kick in from the second quarter. The company also expects significant growth in its global business with a renewed thrust on developing key overseas markets, he said.
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Hero MotoCorp sold 15 per cent fewer units than the preceding quarter (October to December 2020). The decline is seen as a slowdown in rural market demand, which failed to take off. A series of price hikes on two-wheelers, owing to the BS6 transition, and then again due to rising commodity prices, also caused sales to be under pressure.
