Hero MotoCorp Q1 FY 2023 Results: Net Profit Surges 71 Per Cent To Rs. 625 Crore

Hero MotoCorp, the world’s largest two-wheeler manufacturer by volume, has reported net profit of Rs. 625 crore in the first quarter of the current financial year, with a growth in profit after tax (PAT) of over 71 per cent, compared to net profit of Rs. 365 crore in the same period a year ago. The company’s revenues from operations in the period under review (April to June 2022) jumped 53 per cent to Rs. 8,392 crore from Rs. 5,487 crore in the same period a year ago. EBITDA (Earnings before interest, tax, depreciation and amortisation) margin for the June quarter stood at Rs. 941 crore. The company sold 13.90 lakh two-wheelers in the first quarter, up 36% over 10.25 lakh units recorded in the year-ago period.

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Hero MotoCorp is India's largest two-wheeler manufacturing company by volume.

Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, 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. 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.

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“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, opening of all sectors of the economy etc. 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. 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.”

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Hero MotoCorp is expected to introduce a bigger, more powerful variant of the XPulse adventure bike, with a brand new 300 cc engine.

Hero is now gearing up to launch electric vehicles in the festive season and has forged several partnerships and collaborations on this front, including charging infrastructure. Hero is also reportedly working on several new products, including a brand new 300 cc platform which will form the basis of a new adventure bike, a bigger XPulse model, as well as a new full-faired sports bike based on the same 300 cc platform.