Hero MotoCorp Q1 profit soars 36% to Rs 1123 crore on steady sales, higher price

The country’s largest two-wheeler maker Hero MotoCorp Tuesday beat street estimates to report a 36% increase in net profit at Rs 1122.63 crore for the three months ended June 30, 2024 driven by steady recovery in motorcycle sales in the local market and higher average selling price of vehicles.

The company had reported net profit of Rs 824.72 crore in the corresponding period of the last financial year.



Revenues from operations last quarter rose by 15.8% to a record Rs 10,143.73 crore. This is the first time that the company’s revenues crossed the Rs 10,000 crore mark in a quarter.

Total expenses in the quarter under review went up by 14.8% to Rs 8,881.99 crore. The company sold 15.35 lakh two-wheelers last quarter, which is an increase of 13.5% over 13.53 lakh units sold in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 21% to Rs 1,460 crore in Q1 FY25. EBITDA margin last quarter expanded to 14.4%.

Hero MotoCorp witnessed positive trends across domestic, electric vehicle and global business verticals last quarter, the company said in a statement, adding, it expects demand momentum to build up over the next few quarters on back of positive consumer sentiments, good monsoons and the upcoming festive season.

Niranjan Gupta, Chief Executive Officer at Hero MotoCorp, said, “We continue to be on the profitable growth journey, crossing Rs 10,000 crore revenue for the first time ever, accompanied by highest ever underlying PAT. As we surge forward, we are investing behind long-term capacity building to ensure sustained delivery of growth in future.”

Kotak Equities has estimated net profit to rise by 27.3% in the quarter under consideration. Revenue was expected to grow by 21% to Rs 10,600 crore.

Gupta added, Hero MotoCorp is seeing a sharp recover in market share in 125 cc segment powered by new model Xtreme 125 cc while continuing to maintain leadership position in the entry and deluxe segment (100/110 cc) with brands like Splendor, Passion and HF Deluxe. “Our focus going toward will be building our brands in premium segment on the back of launches done in last few quarters to win in this segment. We will be launching new models in scooters as well in next two years to re-energise this portfolio”, he said.

In the electric vehicle segment, Gupta said Hero MotoCorp has started expanding its footprint with scooter Vida, and will be launching more affordable products in the ongoing financial year.

“The overall economic indicators in Indi are promising, and the inclusive policies as well as capital allocation to infrastructure and rural sector announced in union budget is expected to bolster demand. With inflationary pressures easing, consumer spending power is set to rise, further driving momentum as we gear up for a big festive season ahead”, Gupta added.

Hero MotoCorp is optimistic of demand remaining strong in the coming quarters. The company has lined up product launches and strategic initiatives to capitalise on this potential.

Shares of Hero MotoCorp closed at Rs 5240.45 apiece, down by 1.36% on the Bombay Stock Exchange (BSE).