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Business News/ Companies / News/  Hero MotoCorp expects two-wheeler industry to grow in double digits in FY23
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Hero MotoCorp expects two-wheeler industry to grow in double digits in FY23

Gupta said that the entire two-wheeler industry would like to go back to the FY2019 peak as soon as possible.

Hero MotoCorp posted weak set of numbers in the fourth quarter as both bottom and top line took a hit, mainly due to weak rural demand, price hikes and high raw material costs. (MINT_PRINT)Premium
Hero MotoCorp posted weak set of numbers in the fourth quarter as both bottom and top line took a hit, mainly due to weak rural demand, price hikes and high raw material costs. (MINT_PRINT)

India's largest two-wheeler maker Hero MotoCorp Ltd sees the industry having a robust growth in the current financial year with economic activity picking up and high grain prices augmenting rural incomes.

"The macro indicators are really looking good, the GST collection we have all seen is all-time high in April, the e-way bills have picked up, almost in fact I would say all sectors of economy have opened up," Hero MotoCorp CFO Niranjan Gupta said in an analyst call.

"We will have multiple products and variant launches in the coming fiscal and added with all the actions already taken we are confident of gaining market share and hence growing ahead of the industry," he said.

The company posted weak set of numbers in the fourth quarter as both bottom and top line took a hit, mainly due to weak rural demand, price hikes and high raw material costs.

Standalone net profit stood at 627 crore for the March quarter, down 28% compared with 869 crore in the last year period. Revenue from operations too fell 14% to 7,422 crore during the fourth quarter.

Commenting specifically on the growth prospects of the company, he noted: "We will have multiple products and variant launches in the fiscal and added with all the actions already taken, we are confident of gaining market share and hence growing ahead of the industry."

Gupta said that the entire two-wheeler industry would like to go back to the FY2019 peak as soon as possible.

"We got to look at fundamental underlying factors which play to the long-term growth of two-wheeler industry, all those factors are intact and I will repeat those, whether it is under penetration, the need for mobility, whether it is a pent up that has happened in the last 3-4 years, the big pool that is developing, which should actually now propel the replacement demands to be much bigger," he stated.

Besides, better finance options could also aid in the sales growth going ahead, he added.

"So I think the fundamental growth levers remain intact. How fast it happens, we will have to see," Gupta said.

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Published: 16 May 2022, 04:42 PM IST
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