Hero MotoCorp Q2 profit rises 59 per cent at Rs 763 crore

Country's largest two-wheeler maker Hero MotoCorp on Thursday reported 58.62 per cent increase in its net profit at Rs 763 crore for the second quarter ended September 30 riding high on robust sales.

The company had posted a net profit of Rs 481 crore during the same period of previous fiscal.

Turnover of the company rose 20.76 per cent to Rs 6,915 crore for the second quarter, as against Rs 5,726 crore during the same period of previous financial year, Hero MotoCorp said in a statement.

In terms of volumes, the company's total sales during the quarter stood at 16,92,593 units, up 19.5 per cent from 141627 units sold in the same period of previous fiscal.

Commenting on the results, Hero MotoCorp Vice Chairman and Managing Director Munjal said: "a concerted focus on costs has enabled us to have good margins even as we continue to keep strengthening our market leadership."

"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," Munjal added.

Munjal said that 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," he added.

Hero MotoCorp shares on Thursday closed at Rs 2,791.85 a piece on the BSE, down 2.27 per cent from their previous close.