India’s largest two-wheeler manufacturer Hero MotoCorp on Monday reported a 33.33% growth in its net profit at Rs 750.34 crore for the quarter ended June 30, largely due to a significant drop in prices of raw materials even as its suffered a 1.2% decline in turnover due to lower sales.
The company reported sales of 1,645,867 two-wheelers during the quarter, down 4% over 1,715,254 units sold in the same quarter last year. A 5.8% drop in expenses at Rs6,010.4 crore led largely by softer commodity prices helped improve profitability.
The company is banking on an upturn in demand for motorcycles spurred by a good monsoon in the upcoming festive season for better growth in the ensuing quarters.
“We have lined up a slew of new launches as we move into the festive season,” said Pawan Munjal, chairman and chief executive officer, Hero MotoCorp. “We expect the industry to move in an upward trend in the coming quarters although a lot will depend on multiple factors.”