Hero MotoCorp, the world’s largest two-wheeler manufacturer, today reported its highestever revenue for quarter. The company’s Revenue from Operations for the third quarter
(October-December 2020) of the FY’ stood at Rs. 9,776 Crore (vs Rs. 6,997 Cr. in Q3 FY’20).
Consolidated Revenue and PAT for the third quarter (October-December 2020) of the FY’
stood at Rs. 9,827 Crore and Rs. 1,029 Crore respectively for the quarter.
This has been possible, thanks to the robust sales volume during the quarter and a
combination of key strategic initiatives such as cost reduction efforts to partially offset the
impact of the commodity costs and intense operational efficiencies.
On January 21, 2021, Hero MotoCorp surpassed the monumental milestone of 100
Million (10 Crores) units in cumulative production. The 100 millionth motorcycle, the
Xtreme 160R, was rolled-out of the Company’s manufacturing facility in Haridwar, in
the northern Indian hill state of Uttarakhand.
Mr. Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said “Our
performance in the third-quarter underlines Hero MotoCorp’s operational strength and ability
to perform well despite a challenging and volatile environment. The company has been able to
drive profitable growth through improvement in market shares, acceleration of Leap-IIsavings
initiatives, continued control on overheads, and cash flow management. We continue to build
on our strong portfolio with the launch of special edition variants to commemorate the
milestone of 100 Million units in cumulative production.
Going forward, we expect input costs to remain under pressure due to the rising prices of
commodities and fuel. The price increase on our range of products that we undertook from
January 1 will partially offset these cost pressures. We will continue to focus on driving cost
savings, and take judicious price increases if & when necessary.
With the International Monetary Fund (IMF) projecting a strong recovery in India’s economic
growth rate in FY 21-22, we remain optimistic about the prospects of personal mobility and
consumer demand. Hero MotoCorp is confident to make the most of this economic spur on the
back of new launches of exciting products and our strong brand equity with customers across
The government has also provided a balanced and a well-calibrated budget that focuses on
reviving growth through infrastructure spends, while generating resources through public
sector asset monetization.. The emphasis on health, and outlining a five-year path for fiscal
deficit, shows the government’s focus on long-term fiscal prudence. We also welcome the step
to abolish the anti dumping duty on steel, and rationalization of duties on some other products
to address the cost spiral and impact on consumers.”
To mark the occasion of the 100 Million milestone, Hero MotoCorp introduced six
celebration edition models. These include four motorcycles – Splendor+, Xtreme 160R,
Passion Pro and Glamour and two scooters – Destini 125 & Maestro Edge 110. These
will go on sale from February 2021.
At the beginning of the new year, Hero MotoCorp entered into a distribution agreement with
Grupo Salinas, founded by Mexican entrepreneur Ricardo Salinas. Following the agreement,
the two Companies have come together to form one of the largest distribution networks
globally to sell competitive, high-quality products in the large Mexican market.