Resilient margins in tough quarter

Hero MotoCorp's volume growth expected to be strong on rural demand, product launches

Hero MotoCorp’s June quarter (Q1) numbers met expectations.

Revenues grew 7.7 per cent year-on-year (y-o-y) at Rs 7,971 crore, aided by a strong 6.2 per cent growth in volumes and a 1.4 per cent increase in realisations. The operating profit was up 5.5 per cent to Rs 1,295 crore. 

Consensus estimates had pegged revenues at Rs 8,061 crore and operating profit at Rs 1,282 crore. 

Realisations were aided by a better product mix and operating leverage as well as a price hike taken in May ranging from Rs 400-2,000. Aided by higher other income, which was up 9 per cent,