Hero MotoCorp Q1 results: Net profit rises 32% to Rs 825 cr

Two-wheeler major Hero MotoCorp Ltd on Thursday reported a 32% rise in first-quarter profit, as higher selling prices more than offset a fall in sales volume.

The company's standalone profit after tax came in at Rs 825 crore as compared to Rs 625 crore a year ago.

The company's revenue rose 4.5% to Rs 8,767 crore in Q1FY24 as against Rs 8,393 crore in the year-ago period.

Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, said: “Our underlying margins in 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. We have begun strengthening our presence in 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 premium segment.

"Our EV presence is getting scaled up and we are on track to cover 100 cities by December this year. The key economic indicators are trending in positive direction, and a normal monsoon augurs well for demand, as we will soon enter the festive season. Reduced inflationary pressures moving forward, should result in more spending power in hands of consumers. Overall, we see a positive scenario on demand side, especially for second half of this year and onwards."

"Driven by softening of commodity costs, accelerated savings programs, and judicious price increases, EBITDA margin for the quarter stood at 13.8%, reflecting an improvement of 250 bps. The underlying EBITDA margin for ICE Business stands at 14.5%, excluding the impact of EV business," said Hero MotoCorp in a stock exchange filing.

Hero MotoCorp said it expects the momentum to build-up in the coming quarters on account of favorable economic indicators and positive consumer sentiments. With a slew of new launches lined up during this year, Hero MotoCorp is also accelerating its presence in the premium space, it said.

13.53 lakh units of motorcycles and scooters were sold by Hero MotoCorp in Q1FY24.

On Thursday, Hero MotoCorp's scrip on BSE closed 0.75% lower at Rs 3,034.