The consolidated net profit of Hero MotoCorp increased by 47.3 per cent year-on-year (Y-o-Y) to Rs 1,032 crore in the first quarter of this financial year, primarily due to a sharp recovery in the 110-125 cc motorcycle segment after the launch of Xtreme, strong demand for its electric scooter Vida, and the promising condition of the overall economy.
Niranjan Gupta, Chief Executive Officer (CEO), 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 the highest ever underlying profit after tax (in Q1).”
The company’s consolidated total income stood at Rs 10,435.6 crore in the first quarter of this financial year, recording a 15 per cent Y-o-Y growth. India’s largest two-wheeler maker sold 1.53 million motorcycles and scooters in Q1, recording a 13.5 per cent Y-o-Y growth.
Gupta said the company is seeing a sharp recovery in market share in the 125 cc motorcycle segment after the launch of the new model Xtreme 125 cc. Hero continued to maintain its market share at about 70 per cent in the entry-level (100/110 cc) motorcycle segment due to its brands like Splendor, Passion, and HF Deluxe, he noted.
He said that the company’s focus remains on building the brands in the premium segment on the back of launches done in the last few quarters.
“We will be launching new models in scooters as well in the next two quarters, to re‐energise this portfolio. We have now seen our EV (electric vehicle) brand Vida starting to increase its presence and market share, and we will be expanding our portfolio into the affordable segment within this fiscal,” he mentioned.
According to SIAM, Hero sold 10,559 Vida scooters in the first quarter of 2024-25, which was three times the number it sold in the corresponding period last year.
During the first quarter of 2024-25, Hero introduced a voluntary retirement scheme (VRS) and paid Rs 159.99 crore to employees who accepted the VRS.
Gupta said the overall economic indicators in India are promising, and the inclusive policies as well as capital allocation to the infrastructure and rural sectors announced in the union budget are 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, he added.
“Overall, we are optimistic about the demand trajectory for the coming quarters. Our product launches and strategic initiatives are well aligned to capitalise on this positive market environment, ensuring continued growth and value creation for all our stakeholders,” Gupta noted.
First Published: Aug 13 2024 | 8:15 PM IST
