India’s Hero MotoCorp lags in Q4 profit to set up two-wheeler unit in Brazil

The segment comprises the bulk of the Splendor motorcycle maker’s fleet, and its recent launch of the ‘Extreme 125R’ had a strong initial performance, they added.

The company’s standalone profit grew 18.3 percent year-on-year ₹10.16 billion ($121.7 million) in the quarter ended March 31, against analysts’ average estimate of 10.06 billion rupees, according to LSEG data.

Also Read: Hero MotoCorp sells 5.33 lakh units in April 2024, registers growth of 34.7%

Hero MotoCorp said it is looking to increase international sales in its key export market of Latin America, adding that it plans to set up a unit in Brazil that will be involved in manufacturing and distribution of two-wheeler vehicles, parts and accessories.

“As far as Brazil is concerned, we have tested our current product range through customer clinics there,” CEO Niranjan Gupta said in a post-earnings call, adding that vehicles built there will have a 27 percent ethanol blend with gasoline. fuel, called E27.

Hero’s plans to enter the Brazilian market were first reported in 2014, but plans were delayed as the country’s government mandated the use of a gasoline-ethanol blend for fuel.

Hero has six manufacturing plants in India and one each in Colombia and Bangladesh. Rival Bajaj Auto, which beat fourth-quarter profit estimates, is also planning to set up its own manufacturing plant in Brazil, according to media reports last year.

TVS Motor, which reported alongside Hero MotoCorp on Wednesday, missed the estimate.

Date of first publication: 08 May 2024, 9:38 PM IST