Country’s largest two-wheeler manufacturer, Hero MotoCorp is expected to report strong financial performance for the first quarter ended June 30, driven by strong sales, recovery in the rural market and new launches in the 125cc segment like the Xtreme 125R.

The company had reported a consolidated net profit of ₹700.54 crore in the first quarter last year and in the April-June quarter this year, its net profit is expected to rise by double digit growth.

It’s consolidated topline is also expected to grow by double digit growth as compared with Rs.9,676.55 crore during the same quarter last year, said analysts reports.

“The EBITDA margin is anticipated to expand as the company continues to focus on premiumising its portfolio...the company is expected to leverage its strategic gains in the 125cc and 400cc+ segment while making steady progress in the electric two-wheeler segment with the help of new launches in the mid and mass segment this fiscal,” Parth Shah, Research Analyst at StoxBox said.

With the upcoming festive season and improving rural economy, the company is expected to enjoy this seasonal bounce, further boosting its performance, he added.

The company at its meeting held on Monday has allotted 49,008 equity shares of face value of Rs.2 each to the eligible employees of the company who have exercised their stock options/ units under the Employee Incentive Scheme 2014.

“These shares shall rank pari-passu with the existing equity shares of the company in all respects. With this allotment, the paid-up share capital of the company has increased to ₹39,99,60,236/divided into 19,99,80,118 equity shares of face value of ₹2 each,” Hero MotoCorp had said in a stock exchange filing.

Shares of Hero MotoCorp are trading at ₹5,355 apiece on the BSE at 9.48 AM on Tuesday, up 0.79 per cent from the previous close.

Related Topics