Revenue from operations stood at Rs. 5,502.8 crores as compared to Rs. 2,969.1 crores in Q1FY21, a growth of 85.3%. Revenue from operations in Q4FY21 was 8,689.7 crores, it declined by (-36.67%) in Q1FY22.
EBITDA in Q1FY22 was Rs. 519.7 crores, a growth of 344% YoY and a decline of (-57.6%) QoQ.
EBITDA margin in Q1FY22 stood at 9.44%. In Q4FY21 it was 14.1% and in Q1FY21 it was 3.9%.
PAT in Q1FY22 was Rs. 256.1 crores. A growth of 333% YoY and decline of (-70.9%) QoQ.
The high YoY growth is due to lower base in the similar quarter last year.
Increase in raw material costs which were higher than the price increase taken by the company resulted in a reduced EBITDA margin.
The volumes declined by (-35%) QoQ due to a poor mix.
Margins were impacted due to rise in commodity prices.
Business Highlights
The company has sold more than million units in Q1FY22 despite the disruptions due to COVID.
The company had shut down its production for some time during the quarter due to rising COVID cases.
The company has entered into strategic partnership with Gogoro Inc. This will help company to accelerate its shift to electric mobility.
The JV with Gogoro will bring its battery swapping platform to India.
The company with Harley Davidson announced the pricing of H-D 2021 model.
90% of the company’s outlets are operating normally. Retails have reached 80% of pre-COVID levels.
The company expects positive trend in volume due to upcoming festive season.
The company expects to offset the Q2FY22 cost increases with a Rs. 1,200 price hike in July-21 and implementing cost saving strategies. The company has already taken price hikes of Rs. 600 in Apr 21 and Rs. 2000 in Q1FY22.
The company expects the commodity costs to stabilise during Q2FY22.
The exports of the company have grown and expect to reach a run rate of 3 lakh units per year.
The company is seeing improvement in market share in its 7 out of 8 markets.
The company will be launching a in house fast charging solutions product.
The products with Gogoro partnership will be launched in market by 2nd half of CY22.
The company has also planned a capex of Rs. 750 crores – 1,000 crores for upcoming five years. The company would be investing 50% of this capex towards EVs, premium vehicles and exports.
90% of the company’s revenues come from bikes and initial launches in EVs will be in scooter segment, these factors make the company less vulnerable to EVs.
The contribution form spare parts reduced to 8% in Q1FY22 as compared to 12% in Q4FY21. The company expects the contribution to rise to 10% in upcoming quarters.
Hero MotoCorp is not facing any issues due to semiconductor shortages.
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