Auto components maker Hero Motors Ltd on Tuesday (October 13) reported a net profit of ₹10.2 crore for the second quarter, compared with ₹4.73 crore in the corresponding quarter last year. Revenue grew 24.9% year-on-year to ₹319.3 crore from ₹255.7 crore in the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 92% year-on-year to ₹35.9 crore from ₹18.7 crore. The EBITDA margin expanded to 11.3% from 7.3% in the corresponding quarter last year.
Also, Hero Motors Ltd proposes to acquire an additional 39% stake in its subsidiary Hewland Engineering Ltd (HEL) from existing shareholders William Hewland and Siobhan Hewland for approximately £0.60 million in cash.
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The acquisition involves 8,039 equity shares of £1 each and will increase Hero Motors’ shareholding in HEL from 51% to 90%. The transaction is expected to be completed in approximately six months, with no governmental or regulatory approvals required.
Hewland Engineering, incorporated on May 29, 1957, is based in the United Kingdom and designs and manufactures high-performance transmission and drivetrain components for the performance automotive, motorsport, electric vehicle (EV) and aerospace industries. It also provides customised engineering solutions and invests in research and development (R&D).
Hero Motors is an automotive technology company focused on the design, development, manufacturing and supply of powertrain solutions. Its products cater to automotive original equipment manufacturers across the US, Europe, India and the ASEAN region.
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Its portfolio includes solutions for two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars and heavy-duty vehicles. Its customers include BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.
Shares of Hero Motors Ltd ended at ₹155.60, up by ₹0.10, or 0.064%, on the BSE.