Hero MotoCorp Q1 Results: Net Profit Misses Estimates Amid Cost Pressures

India’s largest two-wheeler maker’s sales, however, rose 17% sequentially to 13.9 lakh units in the first quarter. That, however, was aided by a low base as the Omicron variant of Covid-19 impacted operations in the fourth quarter.

Improved demand and higher average selling price also helped the Gurugram-based company. It expects higher demand for two-wheelers to sustain in the upcoming festival season.

“As the country enters the festive season, we expect the two-wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors of the economy, etc.,” Niranjan Gupta, chief financial officer at Hero MotoCorp, said in a statement.

“The margin pressure on the industry is also likely to ease in coming quarters, as commodities cool off and price recovery moves ahead of cost impact,” Gupta said.

Shares of Hero MotoCorp ended 1% lower before the results were announced, compared with a 0.2% rise in the benchmark Nifty 50.