Hero MotoCorp's Q1 Profit Skyrockets by 47% to Rs 1,032 Crore

Hero MotoCorp reported a 47% increase in consolidated profit after tax to Rs 1,032 crore for Q1 ending June 30, 2024, driven by higher sales. Revenue rose to Rs 10,211 crore, and the company sold 15.35 lakh motorcycles and scooters. CEO Niranjan Gupta highlighted positive trends and upcoming product launches.

Hero MotoCorp on Tuesday posted a remarkable 47 per cent increase in consolidated profit after tax, reaching Rs 1,032 crore for the first quarter ended June 30, 2024. The surge was powered by higher sales volumes.

The nation's largest two-wheeler manufacturer reported a profit after tax of Rs 701 crore for the April-June period a year ago. Revenue from operations also saw a significant rise, climbing to Rs 10,211 crore from Rs 8,851 crore, according to a regulatory filing by Hero MotoCorp.

During the April-June period, the company sold 15.35 lakh units of motorcycles and scooters, compared to 13.53 lakh units in the same quarter of FY24. Hero MotoCorp noted positive trends in its domestic, EV, and global businesses during the quarter and expects this momentum to continue in the upcoming quarters, driven by festive seasons, positive customer sentiments, and good monsoons.

CEO Niranjan Gupta stated that the company is on a profitable growth journey, marking this as the first time they crossed Rs 10,000 crore in revenue, with the highest ever underlying PAT. Gupta highlighted a sharp recovery in market share in the 125 cc segment due to the new Xtreme 125 cc model, and maintained solid market share in the entry and deluxe 100/110 cc segments. The company's focus moving forward includes building brands in the premium segment and launching new scooter models within the next two quarters. Gupta also mentioned that the EV brand Vida is expanding its presence and market share, with plans to enter the affordable segment within this fiscal year.

Gupta noted promising overall economic indicators in India, including inclusive policies and capital allocation to infrastructure and the rural sector announced in the union budget, which are expected to boost demand. With inflationary pressures easing, consumer spending power is set to rise, further driving momentum as the company prepares for the festive season. Gupta expressed optimism about the demand trajectory for the coming quarters, emphasizing that Hero MotoCorp's product launches and strategic initiatives are aligned to capitalize on the positive market environment, ensuring continued growth and value creation for stakeholders.

Hero MotoCorp shares ended 1.36 per cent down at Rs 5,240.45 on the BSE on Tuesday.