Informist, Wednesday, Aug. 6, 2025

 

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--Hero MotoCorp Apr-Jun net profit INR 11.26 bln 
--Analysts saw Hero MotoCorp Apr-Jun net profit at INR 10.61 bln 
--Hero MotoCorp Apr-Jun net profit INR 11.26 bln vs INR 11.23 bln year ago 
--Hero MotoCorp Apr-Jun revenue INR 95.79 bln vs INR 101.44 bln year ago 
--Hero MotoCorp Apr-Jun EBITDA INR 13.82 bln 
--Hero MotoCorp Apr-Jun EBITDA margin 14.4%, unch from year ago 

 

By Anand JC

 

NEW DELHI – Hero MotoCorp Ltd.'s top line missed consensus estimates for the June quarter, dragged down by weaker two-wheeler sales. Revenue contracted year-on-year for the first time since the March quarter of 2021-22 (Apr-Mar). While its bottom line exceeded expectations, it grew at the weakest rate since it contracted 10% in the September quarter of FY23.

 

Hero MotoCorp reported a net profit of INR 11.3 billion for the June quarter, a tad higher from the year-ago period. Analysts had expected the two-wheeler maker's bottom line to contract over 5% on year to INR 10.6 billion.

 

Its revenue from operations for the quarter was INR 95.8 billion, down nearly 6% on year. Consensus estimates had pegged Hero MotoCorp's top line at INR 97.9 billion, down just over 3% on year.                

The company's top line fell in tandem with despatches during the quarter. The company sold 1.37 million two-wheelers during the quarter, down over 10% from 1.53 million in the year-ago quarter and around a percent from 1.38 million in the March quarter. Despite the fall in wholesale volumes, Hero MotoCorp said retail demand remained steady during the period. "With the upcoming festive season and a robust line-up of new products, the company expects demand to remain healthy in the coming quarters," it said.

 

The company saw strong demand for its entry and deluxe category motorcycles, in addition to scooters with a capacity of 125 cubic centimetres, said its Chief Financial Officer Vivek Anand in a release.  

 

Hero MotoCorp said its electric mobility business under the VIDA brand saw steady momentum during the quarter. "Global business operations also outperformed industry trends, driven by growth in key international markets and an expanding portfolio across both premium and commuter motorcycles," the company said. 

 

OPERATIONAL PERFORMANCE

Its earnings before interest, tax, depreciation, and amortisation for the June quarter were INR 13.8 billion, lower than the INR 14.6 billion recorded in the year-ago quarter. Consequently, its EBITDA margin for the quarter under review was 14.42%, up from 14.39% last year. The company's other income rose 31% to INR 3 billion.

 

Hero MotoCorp's total expenses fell over 5% on year to INR 84 billion during the latest quarter. It has contracted for the first time since the March quarter of FY22.

Cost of raw materials, which takes up the lion's share in the company's overall expenses, fell 5% on year to INR 63 billion. Input costs fell for the first time in the last seven quarters. Other expenses fell 2% to INR 11.8 billion while staff costs rose 3% to INR 6.3 billion. 

 

On a consolidated basis, Hero MotoCorp reported a net profit of INR 17.1 billion on revenues of INR 97.3 billion. The consolidated bottom line includes a one-time gain of INR 7.2 billion earned by dilution of Hero MotoCorp's share of investment in its associate company, Ather Energy Ltd., after its public issue and private placement.

 

Hero MotoCorp disclosed its financials after the markets closed for the day. On Wednesday, its share price fell 1.6% to INR 4,474.90 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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