Hero MotoCorp Ltd on Friday reported a more than two-fold increase in consolidated profit after tax to Rs 585.58 crore for the first quarter ended June 30, 2022, riding on higher sales.
Hero MotoCorp Ltd said in a regulatory filing that the company had posted a consolidated profit after tax of Rs 256.46 crore in the same period of the previous fiscal.
It said consolidated revenue from operations in the first quarter stood at Rs 8,447.54 crore as compared to Rs 5,502.80 crore in the same period a year ago.
Hero MotoCorp said the company sold 13.90 lakh motorcycles and scooters during the quarter, which is 36 per cent higher than the corresponding period of the previous fiscal.
It added that a combination of cost-saving measures, prudent price hike and premiumization of model line up helped the company maintain its margins despite commodity headwinds and supply chain disruptions due to geopolitical issues.
Total expenses rose to Rs 7,692.93 crore during the quarter as against Rs 5,169.4 crore in the same period last fiscal. The cost of material consumed increased from Rs 4,174.94 crore in the first quarter of the previous fiscal to Rs 6,095.68 crore, the filing said.
Hero MotoCorp, Chief Financial Officer (CFO) Niranjan Gupta said that the financial year started on a positive note for the industry, not only with the growth of the previous year, but also in Q4 FY22 sequentially.
On the outlook, he said, “As the country enters the festive season, we expect the demand for two-wheelers to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening up of all sectors of the economy, etc. ” Gupta said margin pressure on the industry is also likely to ease in the coming quarters, as the commodity has cooled down and price correction is outweighed by cost impact.
Hero MotoCorp said that it is gearing up to launch its electric vehicle during the festive season and has entered into partnerships and collaborations for various activities including charging infrastructure.
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