Hero MotoCorp Q2 net rises marginally to Rs 772 crore

New Delhi: Country's largest two-wheeler maker Hero MotoCorp Tuesday reported a marginal 1.13 percent rise in standalone net profit at Rs 772.06 crore for the second quarter ended September 30, as slowdown in rural markets affected motorcycle sales.

The company had posted a net profit of Rs 763.37 crore during the same period of the previous fiscal.

Net sales, however, declined by 1.72 percent to Rs 6,745.11 crore compared with Rs 6,863.50 crore during the same period of the previous fiscal, Hero MotoCorp said in a regulatory filing.

The company sold 15,74,861 two-wheelers during the second quarter, down 6.95 percent from 16,92,523 units a year ago.

Hero MotoCorp Chairman, Managing Director and CEO Pawan Munjal termed the quarter as historic as the company crossed several milestones during the period.

"During the quarter, we unveiled two new scooters, Maestro Edge and Duet, the first products designed and developed by our in-house R&D team at Hero ?- a testimony to our commitment to produce world-class products in India, for the world," Munjal said.

He added that going ahead the company will further develop its research and development (R&D) ecosystem.

"Our global expansion efforts also received a major boost with the inauguration of our first overseas manufacturing facility at Colombia, which is also the first two-wheeler plant in South America by an Indian company," Munjal said.

He added that the quarter also saw the beginning of sales revival in the domestic market.

"We are cautiously optimistic that this trend will continue in the second half of the fiscal year. The festive season could lead to positive sentiment in the market, which may help maintain the momentum in the coming months," he said.

Hero MotoCorp shares today ended at Rs 2,605.05 on BSE, down 0.33 percent from previous close. The earnings numbers were declared after market hours.