Hero MotoCorp Q1 Results: Profit Up 36%, Revenue Surges 16%
Net profit of the Splendor maker rose 36% year-on-year to Rs 1,123 crore in Q1 FY25 on the back of revenue which rose 16% to Rs 10,144 crore.
Hero MotoCorp Ltd. grew in the fiscal first quarter due to a rebound in sales of its commuter motorcycles. Profitability improved as premiumisation gathered momentum.
Standalone net profit of the Splendor maker rose 36% year-on-year to Rs 1,123 crore in the three months ended 30 June 2024, on the back of revenue which rose 16% to Rs 10,144 crore, according to an exchange filing on Tuesday. Analysts polled by Bloomberg had pegged the top line at Rs 10,432 crore and the bottom line at Rs 1,157 crore.
Hero MotoCorp Q1 Results (Standalone, YoY)
Revenue up 16% at Rs 10,144 crore (Estimate: Rs 10,432 crore)
EBITDA up 21% at Rs 1,460 crore (Estimate: Rs 1,541 crore)
EBITDA margin up 60 basis points at 14.4% (Estimate: 14.80%)
Net profit up 36% at Rs 1,123 crore (Estimate: Rs 1,157 crore)
One basis point is one-hundredth of a percentage point.
“We continue to be on the profitable growth journey, crossing Rs 10,000 crore revenue for the first time, accompanied by highest ever profit after tax,” Niranjan Gupta, chief executive at Hero MotoCorp, said in a media statement accompanying the earnings. “As we surge forward, we are investing in long-term capacity building to ensure sustained delivery of growth in the future.”
The superlative financials largely came on the back of higher sales of motorcycles.
Overall two-wheeler sales of Hero MotoCorp surged 13.5% over the year-ago period to 15.35 lakh units in the April-June 2024 period. While the company didn’t give a break-up, its premium range of motorcycles—including the Harley-Davidson 440X—are gaining traction in the 250-400 cc class of motorcycles.
As far as electric mobility is concerned, the Vida V1 electric scooter achieved its highest ever monthly volumes in the April-June quarter.
“We have seen our EV brand Vida starting to increase its presence and market share. We will be expanding our portfolio into the affordable segment within this fiscal,” Gupta said.
On Tuesday, Hero MotoCorp shares fell 1.36% to Rs 5,240.45 apiece on the BSE even as the benchmark Sensex ended the day 0.87% higher at 78,956.03 points. The quarterly results were declared after market hours.
