Hero MotoCorp, the country’s largest two-wheeler manufacturer, on Friday reported a 71% year-on-year (y-o-y) growth in its standalone net profit for the April-June quarter at `625 crore on relatively better volumes than those in the pandemic-hit year-ago quarter.
The company’s revenue from operations jumped 53% y-o-y to `8,393 crore, while volumes increased 36% y-o-y to 1.39 million units.
Hero MotoCorp reported an operating margin of 11.21% against 9.38% in Q1FY22, a rise of 183 basis points, due to a combination of cost-saving measures, judicious price increases and premiumisation of the model line-up. The Ebitda (earnings before interest, tax, depreciation and amortisation) grew 83% y-o-y to `941 crore.
“The fiscal began on a positive note for the industry, with growth over not only last year but sequentially over Q4 FY22 as well. While the macroeconomic environment globally is facing headwinds of inflation, the Indian economy is relatively better placed to move on the path to recovery and growth. Certain key indicators like GST collections, PMI, and consumer confidence index are all moving in the right direction,” Niranjan Gupta, chief financial officer, Hero MotoCorp, said.
Gupta said with the country entering the festive season, the company expects 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. He added that the margin pressure on the industry is also likely to ease in the coming quarters as commodities cool off and price recovery moves ahead of cost impact.
Hero MotoCorp recently launched new products like Splendor XTEC, Glamour XTEC, Passion XTEC, and Destini XTEC. “These combined with the line-up of future launches should help the company in gaining market shares,” Gupta said.
The company will launch its maiden electric two-wheeler this festive season.
Hero MotoCorp stock ended the day on the BSE at `2,760.90, down 0.88% from the previous close.