Hero Motocorp's Q1 net profit at Rs 914 crore; two-wheeler sales up 6%
Hero Motocorp posted net profit of Rs 914.04 crore, a rise of 3.50% compared to Rs 883.09 crore in the corresponding period of the previous year.
- Bloomberg poll estimated Hero's net profit at Rs 909 crore
- Hero posts net profit of Rs 914 crore in Q1
- Two-wheeler sales increases over 6% in Q1
Hero Motocorp surpassed analysts estimates by registering nearly 4% year-on-year (YoY) rise in its financial result for June 30, 2017 (Q1FY18).
The company posted net profit of Rs 914.04 crore, a rise of 3.50% compared to Rs 883.09 crore in the corresponding period of the previous year.
Q1FY18 net profit also increased by 27.35% from Rs 717.75 crore of the preceding quarter.
A Bloomberg poll estimated net profit of Hero Motocorp to be at Rs 909 crore in Q1.
Total income from operations stood at Rs 8,744.60 crore, witnessing growth 7.54% year-on-year (YoY) and 14.97% quarter-on-quarter (QoQ) basis.
Earnings before interest tax depreciation and amortization (EBITDA) margins was also steady at 16.3%.
Two-wheeler sales was at 1,853,647 units this Q1, up by 6.20% as against 1,745,389 units sold in the similar period of the previous year. In Q4FY17, it sold a total of 1,621,805 units.
Growth in sales of motorcycle stood at 13% and scooters at 22% in June 2017 compared a year ago same month.
Pawan Munjal, Chairman, Managing Director and Chief Executive Officer of Hero Motocorp said, "The new financial year (FY18) promises to be an exciting one for the industry. In the first three months of this fiscal, we further consolidated our domestic motorcycle market share by clocking all time high sales in the quarter."
Munjal added, "The growth in the domestic market was aided by an improvement in overall market sentiment and robust demand for our range of two-wheelers. Hero's global business team has been engaged in brand building and customer engagement initiatives, which resulted in multiple Latin America and Asian markets also reporting encouraging growth during the quarter."
During the quarter, Hero has invested Rs 20.05 crore in associate company i.e Ather Energy Pvt.