Boosted by steady sales growth, the country's largest two-wheeler maker Hero MotoCorp today reported 9.26 per cent rise in consolidated net profit at Rs 481.41 crore for its second quarter ended September 30.
It had posted net profit of Rs 440.58 crore in the same quarter of last fiscal, 2012-13, Hero MotoCorp said in a statement.
Net sales during Q2, 2013-14 were at Rs 5,696.46 crore, as against Rs 5,151.18 crore, up 10.58 per cent, over the year-ago period.
In terms of unit volume, the company said its sales during the quarter grew by 6.26 per cent to 14,16,276 units as against 13,32,805 units units in the year-ago period.
"These numbers bode well for the festive season. The sentiments are positive and there is a momentum for us in the market...," Hero MotoCorp Managing Director and Chief Executive Officer Pawan Munjal said in a statement.
He said: "With our performance in the second quarter of FY'14, we have clearly demonstrated that we can have good margins even as we strengthen our market leadership."
Munjal said, however, that challenges for the industry continue as the country is passing through a very challenging time, which is reflected in the sluggishness in the industry.
The Indian rupee depreciation, which has adversely impacted several sectors, has also pulled up the costs of essential commodities such as steel, nickel, copper and rubber, he added.
"Going forward, these higher input prices, combined with increasing labour costs, are likely to put a lot of pressure on margins in the industry. We will, therefore, be innovative in tackling these cost pressures to protect our margins," Munjal said.
In the April-September period of 2013-14, the company said its net profit after tax stood at Rs 1,030 crore as against Rs 1,056 crore in the year-ago period.
Total turnover during the first half of this fiscal stood at Rs 11,886 crore, as against Rs11,435 crore in the same period of 2012-13 fiscal.
Hero MotoCorp scrip closed at Rs 2,086.35, up 0.79 per cent, on the BSE.