Hero MotoCorp reports robust sales for Q2 FY’14

New Delhi, October 23, 2013: Hero MotoCorp has registered strong sales of 14,16,276 units for the second quarter (July-September 2013) of the current fiscal year. While total turnover (net sales and other operating income) was Rs 5,726 crore, profit before tax stands at Rs 658 crore and net profit after tax at Rs 481 crore.

Commenting on the numbers, Pawan Munjal, MD and CEO, said “With our performance in Q2 FY’14, we have clearly demonstrated that we can have good margins even as we strengthen our market leadership. Our strategy now clearly is to build on that leadership and make our business more profitable through several innovations, including a cost rationalisation initiative.

“These numbers bode well for the festive season. The sentiments are positive and we are definitely looking at demonstrating our leadership by record dispatch and retail sales during the festive period.

EBIDTA margin (Earnings Before Interest, Depreciation & Amortization) for Q2 FY’14 stand at 14.5 percent.

Cumulative sales for first half of the year (April-September 2013) total 29,75,558 units. The second quarter has seen Hero MotoCorp showcase next-gen features to be introduced in its new product line-up. These include i3S (Idle Stop & Start System) technology which is to debut in the all-new Splendor iSmart; Integrated Braking System (IBS) in the all-new scooter Pleasure and electronic immobiliser on the new 150cc Xtreme. Hero says it has filed for patents for these technological innovations. The company has also effected a series of radical refreshes and variants of existing platforms that include the Karizma and ZMR, the new 100cc HF Dawn, HF Deluxe and HF Deluxe Eco; the new 100cc Splendor Pro and 125cc Super Splendor; new 100cc Passion Pro, Glamour & Glamour FI.

Meanwhile, the manufacturer has recently commenced construction of its Rs 450 crore Hero Centre of Global Innovation and Research & Design at Kukas, on the outskirts of Jaipur in Rajasthan. Once operational, HMCL’s current R&D centres, located at the Gurgaon and Dharuhera factories, will shift here to create a technology hub.