Hero MotoCorp clocks two-fold profit in Q1FY2023, expect margin pressure to ease

On the retail front, Hero MotoCorp sold 13.90 lakh units of motorcycles and scooters in the first quarter in FY2023, up by 36 per cent as compared to the sales volume in the corresponding quarter last fiscal.

Hero MotoCorp clocks two-fold profit in Q1FY2023, expect margin pressure to ease

Hero MotoCorp has reported consolidated net profit stood at Rs 625 crore in Q1FY2023 registering a two-fold growth as compared to Rs 365 crore in the corresponding quarter last year.

The revenue grew by 53 per cent to Rs 8,393 crore. The Delhi-headquartered two-wheeler manufacturer’s Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) stood at Rs 941 crore as against Rs 515 crore in Q1 FY2022, reflecting 11.2% EBITDA margin and a growth of 83 per cent.

On the retail front, Hero MotoCorp sold 13.90 lakh units of motorcycles and scooters in the first quarter in FY2023, up by 36 per cent as compared to the sales volume in the corresponding quarter last fiscal.

Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, 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, 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 the XTEC series; Splendor XTEC, Glamour XTEC, Passion XTEC, and Destini XTEC. These combined with a line up of future launches should help the company in gaining market shares.”

The company said that it is gearing up to launch electric vehicles in festive season and has forged several partnerships and collaboration on this front including charging infrastructure. Hero MotoCorp’s July 2022 sales stood flat at 4,45,580 units compared to 4,54,398 vehicles sold last July. 

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