Hero MotoCorp's Q1 success: Key factors driving the profit surge
What's the story
Hero MotoCorp has announced its Q1 FY24 results, reporting a 32% rise in profit as higher selling prices helped offset a fall in sales volume.
The company's standalone profit after tax was Rs. 825 crore as compared to Rs. 625 crore last year.
In Q1 FY24, the revenue from operations increased 4.5% to Rs. 8,767 crore as against Rs. 8,393 crore in Q1 FY23.
Launches
New launches contributed to the rise in popularity
Hero MotoCorp recently launched several motorcycles, including the Xtreme 160R 4V, an OBD2-compliant version of the XPulse 200 4V, a new range of HF Deluxe, and a new Passion+ model.
The company also introduced X 440 with Harley-Davidson. The roadster motorcycle has received over 25,000 bookings.
The homegrown bikemaker will begin producing the X 440 in September.
Future
The company is focusing on expansion plans for EVs
CEO Niranjan Gupta stated that Hero MotoCorp's underlying margins in the ICE business have returned to pre-COVID levels, fueling growth as they focus on market share.
The company is also scaling up its EV presence, with the aim to cover 100 cities by December.
Gupta also noted positive economic indicators, which show a positive demand scenario for the second half of the year.