Homebusiness Newscompanies News

    Hero MotoCorp posts 71% rise in profit on higher 2-wheeler sales

    Hero MotoCorp posts 71% rise in profit on higher 2-wheeler sales

    Hero MotoCorp posts 71% rise in profit on higher 2-wheeler sales
    Read Time
    2 Min(s) Read
    Profile image

    By CNBCTV18.com  IST (Published)

    Mini

    During the quarter, the company sold 13.90 lakh units of motorcycles and scooters, a growth of 36 percent over the corresponding period in the previous fiscal, Hero MotoCorp said.

    Hero MotoCorp Ltd, after market hours on Friday, reported close to 71 percent increase in profit at Rs 624.5 crore in the first quarter ended June 30, 2022, riding on higher sales. During the quarter, the company sold 13.90 lakh units of motorcycles and scooters, a growth of 36 percent over the corresponding period in the previous fiscal, Hero MotoCorp said.
    The company had posted a profit of Rs 365.4 crore in the same period last fiscal. Revenue in the first quarter stood at Rs 8,393 crore as compared to Rs 5,487 crore in the corresponding period a year ago.
    A combination of cost-saving measures, judicious price increases and premiumisation of model line up helped the company maintain its margins despite commodity headwinds and supply chain disruptions due to geo-political issues, it added. During the quarter total expenses were higher at Rs 7,692.93 crore as against Rs 5,169.4 crore in the same period last fiscal. Cost of materials consumed stood at Rs 6,095.68 crore, up from Rs 4,174.94 crore in the first quarter last fiscal, the filing said.
    The fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4 FY22 as well, Hero MotoCorp, Chief Financial Officer (CFO) Niranjan Gupta said. On the outlook, he said, "As the country 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, Gupta added.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng