Hero MotorCorp, world's largest two-wheeler manufacturer, saw a jump in its net profit in the first three months of the year. Riding on robust sales figures in the last quarter, the manufacturer reported that it has mopped up ₹885.28 crore.
The net profit is a straight 44-percent jump compared to the same period last year. Hero MotoCorp had registered a consolidated net profit of ₹613.81 crore in the first three months of 2020.
However, the two-wheeler manufacturer had a consolidated net profit of ₹2,936.05 crore in the entire financial year, which was down by almost 20 per cent compared to the previous financial year.
In the first three months of this year, Hero MotoCorp's consolidated revenue from operations stood at ₹8,689.74 crore as against ₹6,333.89 crore during the same period a year ago. The two-wheeler manufacturer sold 15.68 lakh units in the fourth quarter. It is a growth of 18.5 per cent compared to the same period last year when it sold 13.23 lakh units.
(Also read: Hero Motocorp's sales fall by 35.47% in April)
Pawan Munjal, Chairman and CEO at Hero MotoCorp, said, "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."
Hero MotoCorp has recently re-appointed Pawan Munjal as its chairman and CEO. He will be in charge for a term of five years starting October this year, if Hero's shareholders approve it.
"We also grew our presence in the premium segment that would be further strengthened with our strategic partnership with Harley-Davidson," Munjal added.
Hero MotoCorp recently halted all manufacturing operations temporarily owing to the Covid-19 pandemic in the country. Munjal said, "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 organisation, and various governments and institutions."
Hero MotoCorp had decided to keep its facilities shut for a period of four days - in a staggered manner - between April 22 and May 1. However, it has been extended till May 9 now amid massive surge of Covid-19 cases across the country.
Hero MotoCorp has announced, "The plant operations will resume on May 10. All corporate offices of the company are in Work from Home mode and a very small number of colleagues are allowed in offices on rotation basis for the continuity of essential services."
Commenting on Hero MotoCorp's projections for this year, Munjal said the two-wheeler manufacturer will continue to remain cautiously optimistic on the demand for personal mobility despite the challenging circumstances. He also said that Hero MotoCorp will also launch its first electric vehicle in this financial year.