Hero to focus on scooter, premium bikes segments to boost growth

The firm indicated the impact on profitability from higher commodity costs was contained on the back of price hikes and cost management measures

Hero MotoCorp reported a lower-than-estimated June quarter performance on lower realisations and higher material costs, which impacted both revenue growth and margins. The firm registered a 10.5 per cent year-on-year growth in revenues, led by volume growth of 13.6 per cent. 

While overall realisations were down, Hero, however, indicated that core realisations were higher by Rs 400 per bike, while revenues from spares and other operating revenues were down year-on-year. Margins of the company at 15.6 per cent were down 60 basis points over the year-ago quarter, dragged down by higher raw material costs that increased by 200 basis points.