Hero MotoCorp Q1 FY’24 revenue rises to Rs 8,767cr amidst favorable economic trends

In the first quarter (April-June 2023) of FY’ 2024, Hero MotoCorp, the world’s leading manufacturer of motorcycles and scooters, announced revenue from operations at Rs. 8,767 Crore, reflecting an increase from last year’s Rs. 8,393 Crore. The company’s total income also saw an uptick, reaching Rs. 8,989 Crore, up from Rs. 8,446 Crore.

Financial Snapshot for Q1 FY’24

The consolidated revenue from operations for this period showcased a 5% year-on-year growth, standing at Rs.8,851 Crore. With Profit After Tax (PAT) hitting Rs. 701 Crore, it registered a 20% growth over the previous year. Notably, Profit Before Tax (PBT) reached Rs. 1,255 Crore, marking a significant 52% growth from the preceding quarter. The underlying EBITDA margin for ICE Business displayed a healthy 14.5%, setting aside the EV business impact.

Factors Influencing Hero MotoCorp’s Q1 Performance

Benefiting from reduced commodity costs, proactive savings measures, and strategic price hikes, the EBITDA margin for the quarter settled at 13.8%, marking an improvement of 250 basis points. Furthermore, the Profit After Tax (PAT), even after accounting for the exceptional item of VRS, was at Rs 825 crore, indicating a 32% growth.

Hero MotoCorp’s Enhanced Performance in Q1 FY’24: Key Figures and Highlights. Photo courtesy of Hero MotoCorp Ltd.

CEO Insights: Looking Ahead with Optimism

“Our underlying margins in ICE business have returned to pre-covid levels, providing us the required momentum for future growth,” remarked Mr. Niranjan Gupta, CEO, Hero MotoCorp. He emphasized the brand’s dedication towards capturing a more significant market share, its strengthening presence in the premium sector, and an ambitious plan to cover 100 cities by December in the EV segment.

Product Innovations: April – June 2023

The past quarter was eventful in terms of product launches. The motorcycle giant augmented its position in the premium segment by launching the Xtreme 160R 4 Valve and the E20 compliant adventure motorcycle – XPulse 200 4-Valve. In addition, they introduced an updated range of the HF Deluxe, including the Canvas Black Edition, and unveiled the rejuvenated Passion+.