Hero MotoCorp reported 129 per cent increase in consolidated net profit for the quarter ended June 30 at ₹586 crore, against ₹256 crore in the same period of the previous fiscal.
The performance was, however, lower than consolidated net profit of ₹621 crore recorded in the March 2022 quarter.
Total income for the quarter under review increased 51 per cent to ₹8,503 crore (₹5,648 crore). On a sequential basis, total income was 11.5 per cent higher compared to ₹7,628 crore recorded in the March quarter.
The company sold 13.90 lakh units of motorcycles and scooters in the first quarter, up 36 per cent on a year-on-year basis.
Commenting on the first quarter performance, Niranjan Gupta, Chief Financial Officer, said: “As the country enters the festive season, we expect two- wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors of the economy etc. The margin pressure on the industry is also likely to ease in the coming quarters, commodities prices cool off and price recovery moves ahead of cost impact.
“We have launched several exciting products recently on XTEC series; Splendor XTEC, Glamour XTEC, Passion XTEC, and Destini XTEC. These combined with line up of future launches should help the company in gaining market shares.”
He said the current fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4 FY22 as well. “While the macro economic environment globally is facing headwinds of inflation, Indian economy is relatively better placed to move on path to recovery and growth. Certain key indicators like GST collections, PMI, consumer confidence index are all moving in the right direction,” Gupta said.
Despite commodity headwinds and supply chain disruptions consequent to geo–political tensions, Hero MotoCorp maintained its EBITDA margins sequentially, through a combination of cost saving measures, judicious price increases and premiumisation of model line up .
The profit before tax (PBT) for the quarter was impacted by lower other income arising from MTM (mark to market loss) to the extent of ₹60 crore.
The company is gearing up to launch electric vehicles in the festival season and has forged several partnerships and collaboration on this front, including for charging infrastructure.