Due to greater sales, Hero MotoCorp Ltd. declared a more than doubling of its consolidated profit after tax for the first quarter ended June 30, 2022, at 585.58 crore on Friday.
In a regulatory filing, Hero MotoCorp Ltd reported that the business had reported a consolidated profit after tax of 256.46 crore during the same period the previous year.
According to the company, first-quarter operating revenue totaled $8,447.54 billion, up from $5,502.80 billion in the same period last year.
According to Hero MotoCorp, the business sold 13.90 lakh motorcycle and scooter units during the quarter, an increase of 36% over the same period in the prior fiscal.
The company was able to sustain its margins despite commodities headwinds and supply chain interruptions brought on by geopolitical difficulties thanks to a combination of cost-saving initiatives, prudent pricing hikes, and premiumization of the model lineup, it noted.
Total expenses for the quarter increased to 7,692.93 crores from 5,169.4 crores during the same time last fiscal year. According to the report, the cost of materials utilised increased to 6,095.68 crore from 4,174.94 crore in the first quarter of the previous fiscal.
According to Hero MotoCorp’s Chief Financial Officer (CFO), Niranjan Gupta, the sector saw growth over both the previous year and Q4 FY22. This helped the industry start the fiscal year on a strong note.
With regard to the outlook, he stated, “As the nation enters the festive season, we expect the two-wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors of the economy, etc.” The margin pressure on the industry is also likely to ease in coming quarters, as commodities cool off and price recovery moves ahead of cost impact, he added.
Hero MotoCorp stated that it has established partnerships and collaborations for a variety of activities, including charging infrastructure, as it gears up to introduce its electric vehicle during the holiday season.