Q2 results: Hero MotoCorp net profit falls 9% YoY to Rs 682 crore

Hero MotoCorp’s consolidated net profit fell by 8.63 per cent year-on-year (YoY) to Rs 682.28 crore in the second quarter of FY23 amid weakening rural demand. The company had earned Rs 747.79 crore net profit in Q2 of FY22.

In its BSE filings, the company said it invested Rs 262 crore in electric two-wheeler maker Ather Energy during the first half of FY23. Hero MotoCorp owns approximately 35 per cent stake in Ather Energy.

India’s largest two-wheeler maker said it earned Rs 9,252.22 crore in Q2 against Rs 8,696.8 crore in the same quarter a year ago.

Niranjan Gupta, chief financial officer (CFO) of Hero MotoCorp, said the results reflected its continued financial discipline, focus on cost savings, capital allocation, and also ensured premiumisation of its portfolio on the other.

“We will continue to build presence in the premium segment through multiple launches over the next few quarters,” he said.

Gupta said the global macro headwinds might keep the playfield a bit uncertain, and navigating the same over next few quarters will be important.

“However, as the commodities cool off, and the rate cycle reaches its peak, the medium term outlook for the Indian auto industry appears quite encouraging,” he added.

The company’s total expenses shot up from Rs 7,640.71 crore in Q2 of FY22 to Rs 8.292.25 crore in FY23.

Hero MotoCorp launched its first EV called Vida last month in the premium segment. More EV products “across segments” will be launched over the coming years, it said.