Hero MotoCorp Records 47% Surge in Profit for Q1 2024

Hero MotoCorp, India's largest two-wheeler manufacturer, reported a significant 47% increase in consolidated profit after tax, reaching Rs 1,032 crore in Q1 2024. Revenue from operations also saw an increase, reaching Rs 10,211 crore. The company's robust performance has been attributed to higher sales and new product launches.

Hero MotoCorp on Tuesday reported a remarkable 47% surge in consolidated profit after tax, amounting to Rs 1,032 crore for the first quarter ending June 2024, supported by higher sales figures.

The company, known as India's largest two-wheeler manufacturer, had posted a profit after tax of Rs 701 crore during the same period in the previous year.

Revenue from operations increased to Rs 10,211 crore from Rs 8,851 crore as detailed in the company's regulatory filing. On a standalone basis, the company stated its PAT grew by 36% year-on-year to Rs 1,123 crore, marking its highest-ever post-tax profit.

Hero MotoCorp sold 15.35 lakh units of motorcycles and scooters in Q1 2024 compared to 13.53 lakh units in Q1 FY24. The company attributed its positive quarterly performance to upbeat trends across domestic, electric vehicle (EV), and global markets, along with sequential improvements in retail sales.

CEO Niranjan Gupta emphasized the company's profitable growth trajectory, highlighting crossing the Rs 10,000 crore revenue mark for the first time and achieving its highest-ever underlying PAT. Gupta noted a sharp recovery in market share in the 125 cc segment driven by the new Xtreme 125 cc model, while maintaining a solid market share in the 100/110 cc segment.

Looking forward, the company plans several product launches in both ICE and EV categories. Gupta mentioned that Hero MotoCorp's EV brand, Vida, is expanding its market share and plans to introduce more affordable models within this fiscal year.

Amid promising economic indicators, easing inflation, and rising consumer spending power, the company remains optimistic about future demand. Strategic product launches and initiatives are well-aimed to leverage the positive market environment, ensuring continued growth and value creation for stakeholders.

Hero MotoCorp shares concluded Tuesday's trading session down 1.36% at Rs 5,240.45 on the BSE.