Hero MotoCorp has announced that its revenue from operations for Q1FY24 stood at INR 8,767 crore (INR 8,393 crore) and a total income of INR 8,989 crore in the quarter as opposed to INR 8,446 crore in the same time last year.
Driven by softening commodity costs, accelerated savings programmes, and judicious price increases, the EBITDA margin for the quarter stood at 13.8%, reflecting an improvement of 250 bps.
The company expects the momentum to build up in the coming quarters due to favourable economic indicators and positive consumer sentiments. With a slew of new launches this year, it is also accelerating its presence in the premium space.
Niranjan Gupta, Chief Executive Officer, Hero MotoCorp, noted that the company’s underlying margins in ICE business have returned to pre‐COVID levels, providing the necessary fuel for growth moving forward.
The singular focus ahead will be growth and market share. “We have begun strengthening our presence in premium segment and pre‐booking number for Harley Davidson X440 is a good start,” he added.
The company is expected to launch more new models in this segment over the next few quarters, as it intends to win big in the premium segment. Meanwhile, its EV presence is getting scaled up, and the company is on track to cover 100 cities by December this year.
“The key economic indicators are trending in positive direction, and a normal monsoon augurs well for demand, as we will soon enter the festive season. Reduced inflationary pressures moving forward, should result in more spending power in hands of consumers. Overall, we see a positive scenario on demand side, especially for second half of this year and onwards,” Gupta noted.
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