Hero MotoCorp Q1 Results: Passion Pro motorcycle maker logs 36% jump in profit; revenue tops Rs 10,000 crore for first time
Hero MotoCorp Q1 FY25 Results: Auto major Hero MotoCorp has reported a more than 36 per cent increase in its standalone net profit to Rs 1,122.6 crore for the quarter ended June 30, missing analysts' estimates. Read on to know key takeaways from the motorcycle maker's latest earnigns report.
Hero MotoCorp (HEROMOTOCO) Q1 FY25 Results: Auto major Hero MotoCorp - whose popular models include Splendor Plus, HF Deluxe, Passion Plus and Pleasure Plus - on Tuesday reported a standalone net profit of Rs 1,122.6 crore for the quarter ended June 30, translating to an increase of 36.1 per cent on a year-on-year basis but falling short of analysts' estimates.
Hero MotoCorp Q1 FY25 Results | Net profit jumps 36%
Hero MotoCorp registered a 36.1 per cent year-on-year increase in its standalone net profit to Rs 1,122.6 crore for the first quarter of the current financial year.
Hero MotoCorp Q1 FY25 Results | Revenue up 16%
The auto maker's first-quarter revenue stood at Rs 10,143.7 crore, marking an increase of 15.7 per cent over the corresponding period a year ago.
Hero MotoCorp Q1 FY25 Results | Profit & revenue miss Street estimates
According to Zee Business research, Hero MotoCorp was estimated to register a standalone net profit of Rs 1,200 crore and revenue of Rs 10,580 crore for the June quarter.
Hero MotoCorp Q1 FY25 Results | Sales volumes at 15.35 lakh units
Hero MotoCorp sold 15.35 lakh motorcycles and scooters in the June quarter, as against 13.53 lakh units in the corresponding period a year ago.
The volumes were almost in line with analysts' estimates.
Zee Business analysts had pegged the motorcycle and scooter maker's total volumes for the three-month period at 15.4 lakh.
Hero MotoCorp Q1 FY25 Results | EBITDA at Rs 1,460 crore vs analysts' estimate of Rs 1,590 crore
Hero MotoCorp logged Rs 1,460 crore in its June-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), up 21.1 per cent over the year-ago period.
Zee Business analysts had pegged the auto maker's quarterly EBITDA at Rs 1,590 crore.
Hero MotoCorp Q1 FY25 Results | Margin expands by 60 bps
The auto maker's margin - a key measure of profitability - improved to 14.4 per cent from 13.8 per cent a year ago.
Analysts had pegged the margin at 15 per cent, according to the research.
Positive trends across domestic, EV, global businesses in Q1: Hero MotoCorp
Hero MotoCorp said it expects the momentum to build up in the following quarters on account of positive customer sentiments, a good monsoon season, and the upcoming festive season.
Strong product pipeline
Hero MotoCorp said it has a slew of product launches planned in both ICE and EV categories.
Hero MotoCorp continues to be on profitable growth journey: CEO
Hero MotoCorp CEO Niranjan Gupta highlighted that the company crossed the Rs 10,000 crore revenue mark for the first time ever, accompanied by its highest ever underlying PAT.
Hero MotoCorp investing in long-term capability building
As Hero MotoCorp surges forward, "we are investing behind long-term capability building to ensure sustained delivery of growth in future", said the CEO.
Sharp recovery in 125 cc segment: Hero MotoCorp
"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 per cent powered by our brands like Splendor, Passion, and HF deluxe," added the CEO.
New Hero MotoCorp scooters on the cards?
The CEO also said the company will be launching new models in scooters as well in the next two quarters.
What Hero management said on EV brand
"We have seen now our EV brand Vida starting to increase its presence and market share, and we will be expanding portfolio into affordable segment within this fiscal," the CEO said.
Overall domestic economic indicators promising: Hero MotoCorp CEO
"With inflationary pressures easing, consumer spending power is set to rise, further
driving momentum as we gear up for a big festive season ahead," the CEO 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 added.
Hero MotoCorp shares
Earlier on Tuesday, the Hero MotoCorp stock ended lower by Rs 72.5 - or 1.4 per cent - at Rs 5,240.5 apiece on BSE amid an overall weak session on Dalal Street.
Hero MotoCorp shares are up 27% YTD
As of August 13, Hero MotoCorp shares have rallied 27 per cent in 2024 so far, outperforming an 11 per cent rise in the headline Nifty50 index.
As of August 13, Hero MotoCorp shares have rallied 27 per cent in 2024 so far, outperforming an 11 per cent rise in the headline Nifty50 index.