Hero MotoCorp Q1 Results: Net profit rises 32% YoY to Rs 825 crore but misses estimates

economictimes.indiatimes.com:

Hero MotoCorp Thursday missed Street estimates to report a 32% increase in net profit at Rs 824.72 crore for the first quarter ended June 30,2023 driven by price hikes and a better product mix. The company had posted net profit of Rs 624.52 crore in the corresponding period of the last financial year. Kotak Institutional Equities had expected net profit to grow 40.3% to Rs 875.90 crore and revenues to increase 7% led by a 10% increase in average selling price (ASP) due to price increases and a richer product mix.

The company’s revenues from operations stood at Rs 8767.27 crore in the period under review, which is an increase of 4.5% over Rs 8392.54 crore reported in the year-ago period. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 28% to Rs 1,206 crore last quarter. Ebitda margin for the first quarter grew by 250 basis points to 13.8%.

The company’s sales in the local market declined marginally by 0.8% to 1,317,250 units in the period under consideration. Hero MotoCorp expects the momentum to build-up in the coming quarters on account of favorable economic indicators and positive consumer sentiments. With a slew of new launches lined up during this year, Hero MotoCorp is also accelerating its presence in the premium space.

Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, said “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” Hero MotoCorp has started work on