Hero MotoCorp Q2 profit jumps 41% as scooter and EV sales surge

Total expenses during the quarter rose 25% to Rs 13,228 crore from Rs 10,584 crore in the year-ago period.The results for the quarter and half-year include a Rs 397 crore gain from the equity consolidation of an associate company, following its capital raise through a Qualified Institutional Placement (QIP) and private placement, the company said in a statement.Live EventsManagement commentaryHarshavardhan Chitale, Chief Executive Officer of Hero MotoCorp, said, “We delivered a strong performance this quarter, with scooters emerging as a key growth contributor, supported by healthy momentum across both, ICE and VIDA electric portfolio.

This reflects the strength of our product offerings and our ability to respond to evolving customer aspirations across segments.”Chitale added that the company’s 100cc motorcycle segment also continued to contribute to overall growth.Scooter and electric vehicle sales drive growthDuring the quarter, Hero MotoCorp sold 18.68 lakh motorcycles and scooters, registering growth of 10%.Scooter sales grew 47% year-on-year to 2.40 lakh units.

Internal combustion engine (ICE) scooters continued to gain market share, led by the Destini and Xoom series, which recorded 50% year-on-year growth, with dispatches of 1.37 lakh units during the quarter.The company’s electric mobility brand, VIDA, continued its growth trajectory, recording 76% year-on-year growth in retail sales to 66,531 units during the quarter.“Going forward, our focus remains on sustaining this positive momentum, driving profitable growth and building a more diversified and future-ready business,” Chitale added.Global expansion and premium motorcycle businessHero MotoCorp expanded its global footprint during the quarter by entering Germany, taking its presence to 54 international markets.

The company also launched the XPulse 200 4V and XPulse 200 4V Pro in Bangladesh.Meanwhile, the Harley-Davidson business recorded sequential growth of 30% and year-on-year growth of 19% in the first half of the financial year, the company said.Hero continued to strengthen the Harley-Davidson retail ecosystem during the quarter, expanding its network to offer globally sourced completely built-up (CBU) models alongside the locally manufactured X440 and X440 T.Hero MotoCorp share priceShares of Hero MotoCorp closed at Rs 5,300 apiece, up 1.53% on the BSE. The company announced its results after market hours.(You can now subscribe to our ETMarkets WhatsApp channel)