Mumbai: Top two wheeler maker Hero MotoCorp said on Thursday it is already seeing greenshoots and expects them to sustain and strengthen towards the festive season, after it reported a washout June quarter in sync with performance with its peers in the sector on the back of Covid-19 pandemic and the subsequent lockdown.CFO Niranjan Gupta said the company’s July sales were more than 95 per cent of pre-Covid sales and the company expects to see a positive trend moving forward.
Here are the key takeaways from Hero MotoCorp’s Q1 earnings:
Profit, revenues nosedive: Its standalone net profit for the June quarter plunged 95.12 per cent to Rs 61.31 crore. An ET Now poll had estimated the company to report a net profit of Rs 85 crore. The company’s revenue from operations dropped 63 per cent to Rs 2,971.54 crore from 8,030.27 crore a year ago.
Sales plummet, but market share improves: It sold 5.65 lakh two-wheelers during the quarter, down 69.34 per cent from 18.43 lakh a year ago. However, the company’s market share in the quarter stood at 34.6 per cent, a gain of 333 basis points (bps) on year-on-year basis.
Sequential improvement in July: The company said sequential monthly sales kept improving during the quarter as markets in several parts of the country gradually re-opened, thereby leading the revival of the domestic two-wheeler sector.
Cost control cushions impact: Hero MotoCorp said it was quick to begin work on cost control and efficiencies that enabled it to limit the impact of the unprecedented times.
“Cash conservation efforts and rationalization of expenses, along with productivity enhancement measures, have helped us pass through the uncertain period as we now enter the phase of rapid recovery and return of demand,” said Gupta.
Credit: Stocks-Markets-Economic Times