Hero MotoCorp Ltd, after market hours on Friday, reported close to 71 percent increase in profit at Rs 624.5 crore in the first quarter ended June 30, 2022, riding on higher sales. During the quarter, the company sold 13.90 lakh units of motorcycles and scooters, a growth of 36 percent over the corresponding period in the previous fiscal, Hero MotoCorp said.

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The company had posted a profit of Rs 365.4 crore in the same period last fiscal. Revenue in the first quarter stood at Rs 8,393 crore as compared to Rs 5,487 crore in the corresponding period a year ago.

A combination of cost-saving measures, judicious price increases and premiumisation of model line up helped the company maintain its margins despite commodity headwinds and supply chain disruptions due to geo-political issues, it added. During the quarter total expenses were higher at Rs 7,692.93 crore as against Rs 5,169.4 crore in the same period last fiscal. Cost of materials consumed stood at Rs 6,095.68 crore, up from Rs 4,174.94 crore in the first quarter last fiscal, the filing said.

The fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4 FY22 as well, Hero MotoCorp, Chief Financial Officer (CFO) Niranjan Gupta said. On the outlook, he said, "As the country enters the festive season, we expect the two-wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors of the economy etc."

The margin pressure on the industry is also likely to ease in coming quarters, as commodities cool off and price recovery moves ahead of cost impact, Gupta added.