Hero MotoCorp, a prominent player in the Indian two-wheeler market, released its financial results for the first quarter of FY24, revealing strong growth and positive outlook:
- Profit Growth: The Company reported a 32% increase in profit for Q1 FY24, reaching ₹825 crore compared to ₹624.5 crore in Q1 FY23.
- Revenue and Total Income: On a year-on-year (YoY) basis, the revenue from operations for the quarter was ₹8,767 crore, a rise from ₹8,393 crore reported in Q1 FY23. The total income increased by 6% to ₹8,989 crore in Q1 FY24, up from ₹8,446 crore in Q1 FY23.
- Sales Volume: Hero MotoCorp sold 13.53 lakh units of motorcycles and scooters during Q1 FY24.
- EBITDA and Margin Improvement: The EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) for Q1 FY24 was ₹1,206 crore, with a margin of 13.8%, indicating an improvement of 250 basis points (bps). The underlying EBITDA margin for the Internal Combustion Engine (ICE) Business stood at 14.5%, excluding the impact of the Electric Vehicle (EV) business.
Niranjan Gupta, the Chief Executive Officer of Hero MotoCorp, highlighted their focus on growth, market share, and expansion into the premium segment. He noted that the underlying margins in the ICE business have returned to pre-COVID levels, supporting their growth plans. Additionally, the CEO mentioned the scaling up of their EV presence and the positive economic indicators that are favourable for demand, especially as the festive season approaches.
Hero MotoCorp anticipates that momentum will continue to build in the upcoming quarters due to positive economic indicators and consumer sentiments. The company has a range of new launches planned for the year and is also concentrating on strengthening its presence in the premium two-wheeler market.
In summary, Hero MotoCorp’s Q1 FY24 financial results reveal strong profit growth, increased revenue, and positive outlook. The company’s focus on growth, expansion into the premium segment, and scaling up their EV presence positions them to take advantage of favourable market conditions and consumer demand.
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