Hero Motocorp: Reports robust performance in Q2FY22HEROMOTOCO - 2590 Change: 74.65 (2.97 %)
News: Total operating income in Q2FY22 came in at Rs.8,453 crore, up 54.1% QoQ, amid 40.4% QoQ growth in 2-W volumes. Blended ASP for the quarter was at ~ Rs.58,760/unit (up 9.7% QoQ). EBITDA in Q2FY22 stood at Rs.1,066 crore, up 107.1% QoQ with corresponding EBITDA margins at 12.6% (up 320 bps QoQ). PAT for the quarter came in at Rs.794 crore, up 117.4% QoQ
Views: Blended ASPs surprised positively, which is a function of calibrated price hikes taken by the company to pass on the rise in key input prices, increased share of premium bikes in the sales portfolio, leap program savings and most importantly increased share of spare parts, accessories & merchandise revenues as a % of sales which for the quarter stood at ~13%. On the EV front, the company informed that it will launch its own Electric Vehicle by March 2022 and it will be manufactured at its plant in Chittor (A.P.) India.