New launches, exposure to rural segment to drive Hero MotoCorp's gains

Shift to personal mobility helped improve firm's market share

While Hero MotoCorp's June quarter (Q1) performance was a weak one, it still beat estimates, especially on the margins front. Given the lockdown and supply disruption in the first half of the quarter, the company’s volumes were down nearly 70 per cent from the year-ago level. Higher realisations because of a better product mix and an increased share of BS VI vehicles helped limit the revenue decline to 63 per cent year-on-year (YoY). 

Though the Street was expecting the firm to post a loss at the operating level or a marginal gain, it reported a profit of Rs 108 crore.