Hero Moto net up 3.5% on record vehicle sale

NEW DELHI: Hero MotoCorp Ltd, India’s largest two-wheeler maker, said net profit grew 3.5% in the first quarter to ₹917 crore, helped by its best-ever unit sales performance. The company sold 1.85 million two-wheelers during the quarter as compared to 1.74 million units sold in the first quarter a year earlier, it said.

The New Delhi-based company’s profit marginally exceeded estimates of a Bloomberg poll of 17 brokers who expected net profit of ₹909 crore.

Revenue from operations rose 7.5% to ₹8,612.91 crore from ₹8,010.66 crore in the year earlier.

Earnings before interest, tax, depreciation and amortisation (Ebitda) margin for the June quarter declined marginally to 16.3%, from 16.63% a year ago.

Pawan Munjal, chairman and MD of Hero MotoCorp, said the current financial year promises to be “exciting for the industry” and that Hero MotoCorp has consolidated its domestic motorcycle market share by clocking all-time high sales in the quarter.

“The growth in the domestic market was aided by an improvement in overall market sentiment and robust demand for our range of two-wheelers,” Munjal said in a statement. “We remain committed to consolidating our domestic leadership and expanding our global footprint.”