Shares of Hero MotoCorp rose nearly 4% at Rs 2,767 on the
BSE in Friday’s intra-day trade after the two-wheeler company said it would
raise the ex-showroom prices of its motorcycles and scooters with effect from
July 1 to partially offset the steadily growing input cost inflation.

The two/three-wheeler maker’s shares traded higher for the
fourth straight trading day and have rallied 13% during the period. With the
recent rally, the stock has recovered 29% from its 52-week low of Rs 2,148,
touched on March 8, 2022. The stock had touched a 52-week high of Rs 2,980 on
July 2, 2021.

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Hero MotoCorp stock closed 75.90 points or 2.84% at Rs 2,750.

“Hero MotoCorp will make an upward revision in the
ex-showroom prices of its motorcycles and scooters, with effect from July 1,
2022. The price revision will be up to Rs 3000. The exact quantum of increase
will be subject to the specific model and market,” the company said in an
exchange filing on Thursday after market hours.

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The price revision has been necessitated to partially
offset the steadily growing overall cost inflation, including commodity prices,
the company said.

Competitor Bajaj Auto also hiked prices in May, citing
higher input costs across all models.

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In another filing on June 21, 2022, Hero MotoCorp the
world’s largest manufacturer of motorcycles and scooters, announced the
introduction of Euro-5 compliant variants of its three globally popular
products in Turkiye.

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Hero MotoCorp reported a 27.5% decline in standalone net
profit of Rs 627.05 crore for the fourth quarter ended March 31, 2022, on the
back of low volumes, The company had reported a net profit of Rs 864.97 crore
in the same quarter of the previous financial year. Revenue from operations
fell 14.6% to Rs 7421.73 crore in the March 2022 quarter from Rs 8685.97 crore
in the year-ago period.

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Total expenses in the reported quarter stood at Rs 6759.28
crore, a fall of 11.6% over Rs 7,644.23 crore reported in the March quarter of
fiscal 2021. EBITDA (Earnings before interest, tax, depreciation, and
amortization) margin for the quarter was 11.2%.

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Analysts at HDFC Securities said, “We expect Hero
MotoCorp to gradually recover its lost market share in motorcycles over the
next 2-3 years, led by gradual economic recovery driving consumption from the
mid-to-low income consumers – a key segment for the company and revival in
rural economy”.

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Management expects
the two-wheeler industry to have double-digit growth in the fiscal year 2022-23
on the back of favorable indicators that include marriage season demand, good
festive demand in key regions in April, and positive rural sentiment following
healthy crop output.