Despite a 1 percent year-on-year drop in total sales to 14.17 lakh units in the September quarter, Hero MotoCorp outperformed the market by posting a 47 percent increase in net profit at Rs 1,054 crore, compared to a profit of Rs 716 crore in the same period last year.

Hero MotoCorp's overall net margins increased to 14.1 percent from 11.4 percent last year, thanks to improved material efficiencies.

Lower raw material costs, according to company officials, are a key reason for the margin expansion, as raw material costs as a percentage of revenue from operations fell to 68.6 percent from 71.8 percent last year.

Hero MotoCorp's revenue from operations increased 4.1 percent to Rs 9,445.42 crore in the current quarter, compared to Rs 9,075 crore in the previous fiscal period.

On an annualised basis, the two-wheeler manufacturer increased sales by 26 percent year on year, selling 574,930 units in October 2023 versus 454,582 units in October 2022.

Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, commented on the results, saying that a healthy festive demand across most categories indicates that consumer confidence is returning, which bodes well for the growth momentum moving forward.

"Our strong margin shape will assist us even more in deploying required fuel behind growth priorities," Gupta stated.

As part of its premiumisation strategy, Hero Moto Corp launched the co-developed premium motorcycle, the Harley-Davidson X440, introduced the Karizma Karizma XMR, and plans to "enhance the premium portfolio with the launch of the new Xtreme 200S 4V," he indicated.