Hero MotoCorp Projects Double-Digit Revenue Growth for Next Fiscal, Says CFO.

Hero MotoCorp, India’s largest two-wheeler manufacturer, anticipates double-digit revenue growth in the next fiscal year, backed by continued investments in new products and segments, Chief Financial Officer Vivek Anand said.

The company, which posted ₹10,260 crore in revenue for the December quarter, is also on track for double-digit revenue growth in the current fiscal.

“This year, we had guided for double-digit revenue growth, and based on our performance in the first nine months and the momentum in the fourth quarter, we believe we will see a repeat next year as well,” Anand stated during an analyst call.

Hero MotoCorp’s consolidated revenue from operations for FY24 stood at ₹37,789 crore, up from ₹34,158 crore in FY23. Anand reiterated the company’s focus on investing in premium and electric vehicle (EV) segments, as well as improving customer service through its Hero 2.0 and Premia initiatives.

The company is revamping select sales outlets under the Hero 2.0 theme while expanding its premium showroom network under the Premia brand.

Anand expressed optimism about the growth of the domestic two-wheeler industry, citing sustained demand, a recovery in both rural and urban markets, and the expansion of its 125cc portfolio. “With new product launches and strong investments in power brands, we expect to outpace industry growth,” he added.

He also highlighted the positive impact of the Union Budget, which provides tax relief for the middle class, potentially boosting two-wheeler sales. “For individuals earning around ₹10-12 lakh, the expected tax savings of ₹40,000-50,000 could cover EMIs on a two-wheeler, supporting sector demand,” he noted.

HBL