Hero MotoCorp, the world's largest two-wheeler manufacturer, saw a 14 percent Year-on-Year (YoY) increase in its net profit to Rs 1,204 crore due to a sharp rise in volumes. The New Delhi-based firm's Profit After Tax (PAT) was Rs 1,054 crore during Q2 FY 2023-24.
The Pawan Munjal-led company registered an 11 percent growth in revenue at Rs 10,463 crore as against Rs 9,445 crore in the same period last year.
The results surpassed analysts’ expectations. According to a Moneycontrol poll of eight brokerage firms, the two-wheeler manufacturer’s net profit was projected to rise 9 percent to Rs 1,147 crore, up from Rs 1,054 crore in the same quarter of the previous fiscal year. The company’s revenue was projected to rise by 8 percent to Rs 10,223 crore, as per the brokerage’s estimates.
The company reported an EBITDA of Rs 1,516 crore in the reporting period, which was up about 14 percent Year-on-Year(YoY). Its operating margin for the quarter expanded over the previous year by 40 bps and stood at 14.5 percent, Hero MotoCorp said in a press release.
Hero MotoCorp's parts, accessories and merchandise business also clocked its highest ever quarterly revenue at Rs 1,456 crore.
“We have continued our exceptional performance in Q2 FY’25, once again creating a new high in both topline and bottomline. Our strong focus on cash management has resulted in us delivering strong cash flow, strengthening our financial position even further," CEO Niranjan Gupta said in the press release.
Hero MotoCorp sold 15.2 lakh units of motorcycles and scooters in July-September this fiscal vis-à-vis 14.16 lakh units in the same period last fiscal.
The homegrown automaker claims that the recently concluded festive season saw the company clocking its highest ever retails at 16 lakhs units, backed by higher demand from rural sector. Gupta expects the strong monsoon to help the momentum in the industry going forward.
"The fundamentals look good for Indian economy in general and 2 wheeler industry in particular,” he added.
Earlier this month, Hero showcased a range of high-performance motorcycles and electric scooter for global markets at EICMA 2024 in Italy's Milan. It unveiled three new motorcycles -- the Xpulse 210, the Xtreme 250R, and the Karizma XMR 250.
Meanwhile, Gupta said the company is also planning a slew of launches in scooter segment, covering both ICE( Internal Combustion Engine) and Electric Vehicle (EV). He also revealed that the company has lined up three models coming in ICE scooters by March 2025.
Hero MotoCorp’s stock ended at Rs 4,604.30 on November 14, up by 1.84 percent from the previous day’s close.
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