Hero Motocorp Q1 FY ’21 results: Net profit plunges 95% to INR 61 crore on lockdown

India’s largest two-wheeler manufacturer- Hero MotoCorp- reported  95.12% y-o-y drop in net profit to INR 61.31 crore in Q1 FY’21, as consumers put off purchases during the lockdown months.

The company’s net revenue from operations dropped 63% to INR 2,971.54 crore from INR 8,030.27 crore a year ago.

It sold 5.65 lakh units of two-wheelers during Q1 FY’21, down by 69.34% from 18.43 lakh units a year ago.

However, sales are showing signs of recovery as two-wheeler sales in July were at around 95% of pre-COVID levels.

Hero is ramping up its supply chain to build inventory at dealerships as it expects demand to sustain and get stronger as the festive season approaches.

Hero is seeking to enter the electric three-wheeler category in an attempt to reduce its dependence on the budget bike segment, which accounted for 93% of its total domestic volumes, according to SIAM data for FY’20.

Hero MotoCorp is all geared up to explore options in the premium electric three-wheeler category in an attempt to diversify operations and reduce its dependence on the budget bike segment, which accounted for 93 percent of its total domestic volumes, according to SIAM data for FY20.

Quarterly Results of Hero MotoCorp (in Cr.)

Source: Company data, Compiled and maintained by SteelMint Research