NEW DELHI: India’s largest two-wheeler maker Hero MotoCorp reported a year-on-year (YoY) increase of 71% in net profit during the April-June quarter (Q1FY23) over the low base of covid-hit last fiscal’s same quarter (Q1FY22) and on account of improvement in sale of two-wheelers.
Hero’s profit surged to Rs 625 crore from Rs 365.44 crore in the same quarter a year ago. Q1FY23 net was, however, flat when compared with the March quarter profit of Rs 627 crore. Revenue from operations was at Rs 83,93 crore in Q1FY23 from Rs 5,487.07 crore in Q1FY22.
The automaker sold 13.90 lakh units of motorcycles and scooters in FY2023, up 36% when compared to the sales in the corresponding quarter last fiscal. Hero’s earnings before interest, tax, depreciation & amortization (EBITDA) stood at Rs 941 crore as against Rs 515 crore in Q1FY2022, reflecting an 11.2% EBITDA margin and a growth of 83%.
Niranjan Gupta, chief financial officer (CFO), Hero MotoCorp, said “The fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4FY22 as well. While the macro-economic environment globally is facing headwinds of inflation, the Indian economy is relatively better placed to move on the path to recovery and growth. Key indicators like GST collections, PMI, consumer confidence index are all moving in the right direction.”
However, two-wheeler sales, especially for entry-level models, continue to remain significantly lower than in pre-covid times. Hit by distress in the rural economy and increased cost of ownership due to multiple price hikes by manufacturers, two-wheeler sales in the recently concluded June quarter stood at 37.2 lakhs, much lower than 56 lakh units the industry sold in the same quarter of FY19.