Hero MotoCorp on Thursday reported a 9 per cent decline in its consolidated net profit to Rs 682 crore for the second quarter ended September 30, mainly due to enhanced expenses and a slight dip in sales during the period.
The country's largest two-wheeler maker had reported a net profit of Rs 748 crore in the July-September period of the previous fiscal.
The revenue from operations rose to Rs 9,158 crore in the September quarter compared to Rs 8,539 crore in the year-ago period, Hero MotoCorp said in a regulatory filing.
The company's total expenses during the September quarter rose 9 per cent to Rs 8,292 crore from Rs 7,641 crore a year ago.
On a standalone basis, the company reported a PAT of Rs 716 crore compared to Rs 794 crore in the same period of the last fiscal.
Revenue from operations increased to Rs 9,075 crore in the second quarter against Rs 8,453 crore in the year-ago period.
The two-wheeler major said it has sold 14.28 lakh units of motorcycles and scooters in the September quarter compared to 14.38 lakh units last year.
Hero Motocorp Chief Financial Officer (CFO) Niranjan Gupta said the Indian economy has continued to outperform the global growth supported by its relatively stronger fundamentals, and the return of its strong domestic consumption since the re-opening of all the sectors post Covid-19.
A healthy festive period demand across most categories and specifically in the auto sector have demonstrated that the underlying propensity to spend has gone up, he added.
"Consumer confidence is coming back, which augurs well for growth momentum moving forward. Our Results reflect our continued financial discipline, focus on cost savings and capital allocation on one hand, while ensuring premiumisation of our portfolio on the other," Gupta said.
The company will continue to build a presence in the premium segment through multiple launches over the next few quarters, he noted.
"The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important. However, as the commodities cool off, and the rate cycle reaches its peak, the medium-term outlook for the Indian auto industry appears quite encouraging," Gupta said.
Shares of the company on Thursday ended 0.15 per cent up at Rs 2,646.15 apiece on the BSE.