Hero Motocorp announced its Q1 results on Tuesday after market close.
What Happened: Hero Motocorp reported a 36.12% year-on-year jump in standalone net profit to ₹1,122.63 crore in the June quarter. The two-wheeler maker’s revenue rose 15.69% YoY to ₹10,143.73 crore in the quarter. Its EBITDA was at ₹1,460 crore, a 21% YoY increase.
The numbers missed the average of five analyst estimates of ₹1,183.96 crore in net profit, revenue of ₹10,498.82 crore and EBITDA of ₹1,541.04 crore.
| Brokerage | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| Kotak | ₹10,600 crore | ₹1,582.2 crore | ₹1,192.6 crore |
| Motilal | ₹10,601.3 crore | ₹1,596.9 crore | ₹1,244.8 crore |
| Emkay | ₹10,598.2 crore | ₹1,557.9 crore | ₹1,206.7 crore |
| Nuvama | ₹10,232.4 crore | ₹1,482.6 crore | ₹1,119.5 crore |
| Prabhudas Lilladher | ₹10,462.2 crore | ₹1,485.6 crore | ₹1,156.2 crore |
| Average | ₹10,498.82 crore | ₹1,541.04 crore | ₹1,183.96 crore |
In the corresponding quarter of the previous year, Hero had a net profit of ₹936.7 crore and a revenue of ₹8767.3 crore. It had an EBITDA of ₹1,206.3 crore.
See Also: IRCTC Sees Q1 Net Profit Jump 33% To ₹308 Cr, Revenue Jumps 12%
The company sold 15.35 lakh units of scooters and motorcycles in the quarter compared to 13.53 lakh units in the previous year.
Niranjan Gupta, CEO, of Hero MotoCorp, said “We are seeing a sharp recovery in market share in 125 cc segment charged by the new model Xtreme 125 cc, while we continue to maintain formidable market share in entry and deluxe 100/110 cc segment of over 70% powered by our brands like Splendor, Passion, and HF deluxe. 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 2 qtrs., to re‐energise this portfolio.”
The company in August had started operations in the Philippines after teaming up with Terrafirma Motors Corporation (TMC). The move was part of the company’s strategy to expand globally.
Hero Motocorp announced price hikes for some of its motorcycles and scooters in July. The ex-showroom price of several models was increased up to ₹1,500. The company had also started delivering its flagship product, Maverick 440 across the country in the quarter.
Price Action: Shares of Hero Motocorp fell 1.55% to ₹5,229.55 on Tuesday ahead of the results announcement.
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