Hero MotoCorp Net Rises Slightly in June Quarter

Hero MotoCorp Ltd. posted a marginal rise in net profit for the June quarter even as revenue fell for the first time in over three years, weighed by a sharp drop in two-wheeler sales.

The standalone net profit rose slightly to ₹11.3 billion, while revenue slipped nearly 6% on year to ₹95.8 billion. This was the company’s first annual decline in top line since the March quarter of 2021-22.

Volume fell over 10% on year to 1.37 million units in the June quarter, from 1.53 million a year earlier. On a sequential basis, volumes were broadly flat compared with 1.38 million units sold in the March quarter.

Despite the decline in wholesales, the company said retail demand stayed stable and it expects healthy momentum ahead, supported by new product launches and festive demand. Hero MotoCorp said its entry-level and deluxe motorcycle segments, along with the 125cc scooter category, showed strong traction in the quarter. Its electric brand VIDA maintained momentum, and the international business saw growth driven by better demand and a wider portfolio.

Operating performance was steady, with EBITDA falling to ₹13.8 billion from ₹14.6 billion a year ago. However, the EBITDA margin rose slightly to 14.42% from 14.39%. Other income jumped 31% to ₹3 billion.

Total expenses declined over 5% on year to ₹84 billion, marking the first such contraction since the March quarter of 2021-22. Raw material costs dropped 5% to ₹63 billion—the first fall in seven quarters. Other expenses dipped 2% to ₹11.8 billion, while staff costs inched up 3% to ₹6.3 billion.

On a consolidated basis, Hero MotoCorp reported a net profit of ₹17.1 billion on revenue of ₹97.3 billion. The bottom line included a one-time gain of ₹7.2 billion from dilution of stake in associate Ather Energy Ltd.