Hero MotoCorp eyes double-digit revenue growth next fiscal: CFO Anand

The country's largest two-wheeler maker Hero MotoCorp expects double-digit revenue growth next fiscal riding on the back of continued investments on new products and segments, according to Chief Financial Officer Vivek Anand.

The company, which reported a revenue of Rs 10,260 crore for the December quarter, also anticipates a double-digit revenue growth in the current fiscal.

"This year, the guidance we have given is for double-digit revenue growth. Looking at our first nine months performance and looking at how this quarter (fourth) has started, we believe that there will be a repeat next year, a double-digit revenue growth," Anand said in an analyst call.

The company's consolidated revenue from operations for FY24 stood at Rs 37,789 crore as compared with Rs 34,158 crore in FY23.

On the business outlook, he noted that the company would continue its investments behind new products and segments.

"We remain consistent in our commitment towards investing behind the premium and EV portfolio and improved customer service in store with Hero 2.0 and Premia and online with investments behind digital and technology," Anand said.

The company is upgrading some of its existing sales outlets under Hero 2.0 theme. It is also setting up premium showrooms under the Premia brand.

Anand stated that the company remains positive about the growth prospects of the domestic two-wheeler industry.

"With the continuity of demand and recovery in the broader two-wheeler markets for both rural and urban ramp up of 125cc portfolio, new product launches and strong investment behind building power brands, we expect to grow ahead of the industry," he added.

Anand stated that the Budget has provided tax relief to the middle class which would be beneficial for the growth of the two-wheeler industry.

"We believe that anybody who's earning close to Rs 10-12 lakh will have a positive cash impact of around Rs 40,000 to Rs 50,000 which will possibly take care of the EMI which today he or she is paying for the two-wheeler. So, this should really help drive consumption for the two-wheeler sector," he added.