Hero MotoCorp Ltd, the country’s largest two-wheeler manufacturer, on Thursday reported a 38.2 per cent year-on-year increase in net profit to Rs 865 crore for the quarter ended March 31, as sales of its motorcycles and scooters improved on a low base of the year period and rise in demand for entry-level motorcycles in the rural and semi-urban markets.
The New Delhi-based automaker reported a net profit of Rs 621 crore in the corresponding period as sales took a hit due to economic slowdown and transition to new safety and emission norms.
The two-wheeler maker which had shut down its factories on April 22, has extended the closure to May 10.
"We expect normalcy to kick-in from the second quarter with a likely slowdown in Covid-19 cases and higher vaccination levels. Due to the evolving pandemic situation, we are remaining prepared to address any eventuality to be able to stabilize our business in the remaining months of the quarter," said Chief Financial Officer Niranjan Gupta.
“A healthy monsoon and harvest season and a rebound in GDP should aid the industry’s recovery from Q2 onwards. The company also expects a significant growth in its global business with a renewed thrust on developing key-overseas markets," he added.
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