Hero MotoCorp Q2 results: Net profit up 5.6% on high rural demand

Country’s biggest two-wheeler maker Hero MotoCorp on Thursday reported a 5.6 per cent jump in its net profit and an impressive 10 per cent growth in its consolidated revenues during the second quarter of financial year 2025 (Q2FY25), a telltale sign of rising demand in rural areas.

 

Hero MotoCorp recorded the highest ever retail at 1.6 million units in the recently concluded festival period backed by demand from the rural sector.

 

The consolidated revenue rose to Rs 10482.93 crore while net profit for the quarter came in at Rs 1063 crore.

 

The company said that on a standalone basis it reported its highest ever quarterly revenue of Rs 10463 crore, up 11 per cent while its profit after tax grew by 14 per cent to Rs 1204 crore. The company also reported its highest-ever quarterly revenue from part, accessories, and merchandising at Rs 1456 crore.

 

 

The results were declared post market hours. The stock was up 1.8 per cent to Rs 4604.3 apiece on Thursday. 

 

As for H1FY25, the consolidated revenues were up 12.5 per cent to Rs 20693.72 while the net profit came in at Rs 2109.6 crore, up 23 per cent.

 

Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, said, “We have continued our exceptional performance in Q2FY25, once again creating a new high in both topline and bottomline. Our strong focus on cash management has resulted in us delivering strong cash       flow, strengthening our financial position even further.”

 

Gupta said that the firm is planning a slew of launches in the scooter segment, covering both ICE and EV. “We will have 3 models coming in ICE scooters by March 2025, containing           many first in class and best in class features.”

 

“We believe that the strong monsoon will help the momentum in the industry going forward. The fundamentals look good for the Indian economy in general and 2-wheeler industry in particular,” Gupta elaborated.

 

During Q2FY25, the company unveiled three new motorcycles at EICMA 2024-- the Xpulse 210, the Xtreme 250R and the Karizma XMR 250.

 

It also launched the Hero Glamour 2024 with new features and colour options apart from the Mavrick 440 Thunderwheels, a limited-edition motorcycle in collaboration with Thums Up, and also launched the new Hero Xtreme 160R 2V 2024 Edition besides Unveiling the New Hero Destini 125 Scooter.

 

In electric mobility, it crossed 6,000 monthly sales units in August for the first time with retail market share growing to over 5 per cent according to VAHAN.

 

On the exports front, Hero entered Southeast Asian geography by commencing operations in the Philippines. It registered growth of 30 per cent in its YTD sales in global business.