Hero MotoCorp Q1 Profit Soars 47% to Rs 1,032 Cr

New Delhi, Aug 13 (PTI) Hero MotoCorp on Tuesday posted 47 per cent increase in consolidated profit after tax at Rs 1,032 crore for the first quarter ended June 30, 2024, aided by higher sales.

The country's largest two-wheeler maker had reported a profit after tax (PAT) of Rs 701 crore for April-June period a year ago.

Revenue from operations rose to Rs 10,211 crore from Rs 8,851 crore, Hero MotoCorp said in a regulatory filing.

The company said it sold 15.35 lakh units of motorcycles and scooters in the April-June period this fiscal as compared with 13.53 lakh units in the first quarter of FY24.

Hero MotoCorp said it witnessed positive trends across domestic, EV and global businesses during the quarter.

The company also witnessed sequential improvement in retail sales, it added.

It expects the momentum to build up in the following quarters on account of positive customer sentiments, good monsoons and the upcoming festive season.

The company has a slew of product launches planned in both ICE and EV categories, it 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," Hero MotoCorp CEO Niranjan Gupta said.

As the company surges forward, it is investing behind long-term capability building to ensure sustained delivery of growth in future, he added.

Gupta stated that the company is witnessing a sharp recovery in market share in 125 cc segment charged by the new model Xtreme 125 cc, while continuing to maintain formidable market share in entry and deluxe 100/110 cc segment.

"Our focus moving forward 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 quarters to re-energise this portfolio," he added.

Gupta noted that the company's EV brand Vida is starting to increase its presence and market share, and Hero will be expanding portfolio into affordable segment within this fiscal.

He stated that the overall economic indicators in India are promising, and the inclusive policies as well as capital allocation to infra 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 the company gears up for a big festive season ahead, he said.

"Overall, we are optimistic about the demand trajectory for the coming quarters. Our product launches and strategic initiatives are well aligned to capitalize on this positive market environment, ensuring continued growth and value creation for all our stakeholders," Gupta said.

Hero MotoCorp shares on Tuesday ended 1.36 per cent down at Rs 5,240.45 apiece on the BSE.