Hero Motocorp Q1 FY23 PAT up 71%to INR 624 crore, Auto News, ET Auto

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 The company sold 13.90 lakh two-wheelers in the first quarter, up 36% compared to 10.25 lakh units recorded in the year-ago period.
The company sold 13.90 lakh two-wheelers in the first quarter, up 36% compared to 10.25 lakh units recorded in the year-ago period.

New Delhi: India’s leading two-wheeler maker Hero MotoCorp on Friday reported a 71% jump in its standalone net profit to INR 624.52 crore for the first quarter ended June 30, 2022. The company had posted net profit of INR 365 crore in the corresponding period of the previous financial year.

Meanwhile, the company’s revenue from operations in the period under consideration (Q1FY23) jumped 53% to INR 8,392.54 crore from INR 5,487 crore earlier. Total expenses stood at INR 7,621.73 crore compared to INR 5,141 crore registered in Q1FY22.

Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said “While the macroeconomic environment globally is facing headwinds of inflation, the Indian economy is relatively better placed to move on path to recovery and growth.”

“Certain key indicators like GST collections, PMI, consumer confidence index are all moving in the right direction,” he said.

“As the country enters the festive season, we expect the 2 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,” Gupta said.

During the quarter under review, EBITDA) (Earnings before interest, tax, depreciation and amortisation) margin for the June quarter stood at INR 941 crore.

The company sold 13.90 lakh two-wheelers in the first quarter, up 36% compared to 10.25 lakh units recorded in the year-ago period.