Hero MotoCorp Q1 Results: Net profit tops estimates on strong export growth; margins remain flat

Hero MotoCorp, one of the world’s largest two-wheeler manufacturers, announced its June-quarter results today, post-market hours, reporting a standalone net profit of ₹1,126 crore, nearly flat compared to ₹1,123 crore in the year-ago quarter but surpassing analysts’ estimates of ₹1,036 crore, helped by higher exports.

The revenue from operations stood at ₹9,579 crore, down 5.5% from ₹10,143 crore in the June 2024 quarter. Weak domestic demand weighed on sales, but the impact was partly offset by stronger exports and higher vehicle prices over the past year, helping limit the overall revenue decline.

At the operating level, EBITDA stood at ₹1,382 crore compared to ₹1,460 crore in the same quarter last year, while margins remained flat at 14.4%, supported by a richer product mix and cost control measures.

On a consolidated basis, revenue and profit after tax came in at ₹9,728 crore and ₹1,706 crore (vs. ₹1,032 crore previously), respectively. The consolidated profit for the quarter includes a one-time gain of ₹722 crore from the dilution of the company’s investment in Ather Energy Limited, which successfully completed its Initial Public Offering (IPO) of equity shares during the quarter.

Between April and June, the company sold 13.67 lakh units, lower than the 15.35 lakh units sold in the corresponding period last year and also below the 13.81 lakh units sold in the preceding March quarter.

With the upcoming festive season and a robust line-up of new products, the company expects demand to remain healthy in the coming quarters.

Vivek Anand, Chief Financial Officer, said, “Our profitability and margins remained resilient, supported by strong demand for our entry & deluxe motorcycles and 125cc scooter segments. We are witnessing good traction in our electric mobility business (VIDA), and global operations also remained ahead of the industry, reflecting the strength of our brand in international markets."

"With favourable customer sentiment, upcoming festive season and a robust pipeline of new product launches, we are con ident of sustaining and driving growth in the coming quarters," he further added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories