 "Hero MotoCorp")
Hero MotoCorp’s consolidated net profit rose 30.66 per cent year-on-year (YoY) to Rs 810.6 crore in the last quarter of 2022-23 on the back of higher prices, rise in non-operating income and better savings.
Niranjan Gupta, chief executive officer (CEO), Hero MotoCorp, said, “The company has been able to drive margin expansion and profitable growth this quarter through a judicious combination of pricing, savings, and mix.”
The company’s non-operating income rose 81 per cent YoY to Rs 237.54 crore in Q4 of 2022-23. However, its overall income rose by 13.68 per cent to Rs 8,671.82 crore in Q4.
“In the coming fiscal year (FY24), we have lined up a slew of product launches in different segments with an aim to strengthen our premium portfolio as well as premiumisation of existing models, which will help us deliver improvement in market share,” Gupta noted.
Economic activity in India continues to build momentum with key indicators moving in a positive direction, he added.
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“We do expect two-wheeler industry revenue growth to be in double digits in the coming year (FY24),” Gupta noted.
Hero MotoCorp’s consolidated annual net profit rose by 20.21 per cent to Rs 2,800 crore.
Mitul Shah, head of research at Reliance Securities, said the company’s net profit was higher in Q4 of FY23 due to better “operating performance”, along with a jump in non-operating income. The company’s total two-wheeler sales rose by 6.81 per cent to 1.27 million in Q4 of FY23.
Shah said the demand was coming back in the urban market and even rural sales were expected to rise in FY24. As Hero MotoCorp is the market leader, it will be able to capitalise on demand recovery over the next two years, he added.
