Hero MotoCorp Q1 PAT jumps 71% YoY, supported by strong revenue growth
The two-wheeler maker recorded a 71% increase in its standalone net profit to Rs 625 crore in Q1 FY23 from Rs 365 crore in Q1 FY22.
Operating revenue for the first quarter amounted to Rs 8,393 crore, representing a growth of 53% compared to the corresponding quarter of the previous fiscal year.
EBITDA increased by 83% year-on-year to Rs 941 crore in the first quarter of FY23, reflecting an EBITDA margin of 11.2% and growth of 83%.
Profit before tax (PBT) in Q1 FY23 was Rs 824 crore, up 70% from Rs 484 crore in Q1 FY23.
The company sold 13.90 lakh units of motorcycles and scooters in the first quarter of FY23, a growth of 36% compared to the corresponding quarter of the previous fiscal year.
Hero MotoCorp said that despite raw material headwinds and supply chain disruptions resulting from geopolitical issues, the company maintained sequential EBITDA margins, thanks to a combination of cost reduction measures, sensible price increases and premiumization of the model range.
PBT for the quarter was impacted by lower other income resulting from MTM (loss of market value), to the extent of Rs 60 crore.
Hero MotoCorp said it is gearing up to launch an electric vehicle this holiday season and has forged several partnerships and collaborations on that front, including charging infrastructure.
Niranjan Gupta, chief financial officer (CFO) of Hero MotoCorp, said the fiscal year started on a positive note for the industry, with growth not only last year, but also sequentially in the fourth quarter of the year. 22. As the global macroeconomic environment faces headwinds of inflation, India’s economy is relatively better positioned to head towards recovery and growth. Some key indicators like GST collections, PMI, consumer confidence index are all moving in the right direction.
As the country enters the festive season, we expect the demand for 2 wheelers to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors economy, etc. The pressure on industry margins is also likely to ease in the coming quarters as raw materials cool and the recovery in prices outpaces the impact on costs.
Hero MotoCorp is the world’s largest manufacturer of motorcycles and scooters.
The certificate lost 0.88% to end at Rs 2,760.90 on BSE on Friday.
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