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Hero MotoCorp on Thursday reported a consolidated net profit of ₹700.54 crore for the first quarter ended June 30, a jump of 19.63 per cent year on year (YoY) compared with ₹585.58 crore in the corresponding period last year.
Its consolidated total income grew 13.80 per cent YoY to ₹9,676.55 crore (8,503.07 crore) during the quarter.
Driven by softening of commodity costs, accelerated savings programmes, and judicious price increases, EBITDA margin for the quarter stood at 13.8 per cent, reflecting an improvement of 250 bps, the company said.
Hero MotoCorp expects the momentum to build up in the coming quarters on account of favourable economic indicators and positive consumer sentiments, it said, adding that with a slew of new launches lined up during this year, Hero MotoCorp is also accelerating its presence in the premium space.
“Our underlying margins in internal combustion engine (ICE) business has returned to pre‐Covid levels, providing us the necessary fuel for growth, as we move forward. The singular focus as we move ahead will be growth and market share,” Niranjan Gupta, Chief Executive Officer, Hero MotoCorp, said.
Premium segment
He said the company has begun strengthening its presence in the premium segment and pre‐booking number for Harley Davidson X440 is a good start.
“We will see more launches of new models in this segment over next few quarters, as we intend to win big in the premium segment. Our electric vehicle (EV) presence is getting scaled up and we are on track to cover 100 cities by December this year,” Gupta said.
He said the key economic indicators are trending in positive direction, and a normal monsoon augurs well for demand, as the industry enters the festive season. “Reduced inflationary pressures, moving forward, should result in more spending power in the hands of consumers. Overall, we see a positive scenario on the demand side, especially for the second half of this year and onwards,” he added.
Shares of Hero MotoCorp closed at ₹3,034.30 apiece on the BSE on Thursday, down 0.75 per cent.
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