Hero MotoCorp Ltd on Friday reported over two-fold rise in consolidated profit after tax (PAT) at ₹585.58 crore in the first quarter ended June 30, riding on higher sales.
The company had posted a consolidated profit after tax of ₹256.46 crore in the same period last fiscal, according to a regulatory filing.
Consolidated revenue from operations in the first quarter stood at ₹8,447.54 crore compared to ₹5,502.80 crore in the corresponding period a year ago, it added.
During the quarter, the company sold 13.90 lakh units of motorcycles and scooters, a growth of 36 per cent over the corresponding period in the previous fiscal.
Total expenses were higher at ₹7,692.93 crore as against ₹5,169.4 crore in the same period last fiscal. Cost of materials consumed stood at ₹6,095.68 crore, up from ₹4,174.94 crore in the first quarter last fiscal.
A combination of cost-saving measures, judicious price increases and premiumisation of model line up helped the company maintain its margins despite commodity headwinds and supply chain disruptions due to geo-political issues., the filing said.
The fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4 FY22 as well, Chief Financial Officer (CFO) Niranjan Gupta said.
"As the country enters the festive season, we expect the two-wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, and opening of all sectors of the economy." The margin pressure on the industry is also likely to ease in coming quarters, as commodities cool off and price recovery moves ahead of cost impact, he added.
Hero MotoCorp said it is preparing to launch its electric vehicle in the festive season and has entered into partnerships and collaborations for various activities, including charging infrastructure.