Hero MotoCorp, India’s largest two-wheeler company, reported a 36% increase in standalone net profit for the first quarter of FY25, reaching Rs 1,122.63 crore. This rise, driven by strong sales and a recovery in the rural market, came despite missing some market expectations.
Key Highlights
- Net Profit: Rs 1,122.63 crore, up 36% from Rs 824.72 crore in Q1 FY24.
- Revenue from Operations: Rs 10,144 crore, a 16% increase from Rs 8,767 crore in the same quarter last year. This marks the first time Hero MotoCorp’s revenue from operations has crossed the Rs 10,000 crore mark.
| Financial Metric | Q1 FY25 | Q1 FY24 | Growth (%) |
|---|---|---|---|
| Net Profit | Rs 1,122.63 crore | Rs 824.72 crore | 36% |
| Revenue from Operations | Rs 10,144 crore | Rs 8,767 crore | 16% |
Performance Overview
- The company’s performance was bolstered by strong sales, particularly in the 125cc segment, thanks to new launches like the Xtreme 125R.
- However, the results slightly missed market expectations, with a Moneycontrol poll predicting a net profit of Rs 1,190 crore and revenue of Rs 10,520 crore.
CEO’s Insights
Niranjan Gupta, CEO of Hero MotoCorp, highlighted the company’s strong market presence in the 125cc and entry-level 100/110cc segments. He emphasized the success of new models like the Xtreme 125R and the company’s ongoing strategy to strengthen its position in the premium segment.
- Market Share: Hero MotoCorp maintained a market share of over 70% in the 100/110cc segment, powered by brands like Splendor, Passion, and HF Deluxe.
- Future Plans: The company plans to launch new scooter models in the next two quarters and expand its EV portfolio with more affordable options.
EV Segment and Market Outlook
- The company’s EV brand, Vida, has started gaining traction in the market, and Hero MotoCorp plans to expand its EV offerings within this fiscal year.
- With positive economic indicators, easing inflation, and increased consumer spending power, Hero MotoCorp is optimistic about the demand trajectory for the coming quarters, particularly with the upcoming festive season.
Stock Performance
On August 13, Hero MotoCorp’s shares closed 1.55% lower at Rs 5,229.55 per share
TOPICS:
Hero Motocorp