Indian two-wheeler manufacturer Hero MotoCorp announced that its Q2 (July-September) sales have increased by 7.7pc from prior-year quarter and is confident that the demand momentum would continue into the festive season based on early estimates. Hero MotoCorp sold 1.82mn units in Q2.
The company performed well in Q2 as the economy gradually revived from the negative impacts of COVID-19. Supply chain difficulties have shrunk and demand has almost reached pre-COVID levels, said Niranjan Gupta, CFO, Hero MotoCorp.
He said the initiatives taken by the government directed towards rural and semi-urban regions of the country have been fruitful in improving the challenging economic environment.
The company reported a 9pc growth in net profit for Q2 to Rs5.3bn ($72mn), supported by revenue, compared to the year prior. Revenues stood at Rs93.67bn in Q2, up by 23.7pc from the previous year.
In September, Hero MotoCorp sold more than 0.7mn units of motor bikes and scooters, up 16.9pc form the previous year. The month saw the highest sales in 2020 by Hero. The company is operating at 100pc capacity.
Several auto manufacturing companies have said that input costs and commodity prices had increased in Q2 which led them to revise ex-showroom prices of vehicles by up to 2pc. These price revisions will be effective from October 1.