Hero MotoCorp on May 8 reported 18.4 percent increase in its standalone net profit at Rs 1,016 crore for the quarter ended March 31, 2024 on the back of strong volume growth, newer product mix, softening commodity costs, and higher average selling prices (ASPs). Its profit after tax (PAT) during the fourth quarter of last financial year stood at Rs 859 crore.
The two-wheeler manufacturer, whose popular models include Splendor Plus, HF Deluxe, Passion Plus and Pleasure Plus, registered a 14.6 percent growth in revenue to Rs 9,519 crore in Q4FY24 as compared to Rs 8,307 crore in the corresponding period last year.
For FY24, the firm declared final dividend of Rs 40 per share of Rs 2 face value.
"This dividend together with interim & special dividend, marking the centennial year of Chairman Emeritus Dr. Brijmohan Lall Munjal, of Rs 100 per equity share, takes the aggregate total dividend for the year 2023-24 to Rs 140 per equity share i.e. 7,000 percent," the company said in a statement.
“During the year, our focus on product launches, network upgrade and customer satisfaction drove us to new heights. From the highest number of product launches, to the expansion of new format retail outlets and upgrade at super speed, to a digital‐first approach in premium, we set the building blocks in place for accelerated growth in future," Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, said in an official statement.
The motorcycle maker's topline and bottomline were almost in line with analysts' expectations as the average estimates of nine brokerage estimates predicated that Hero MotoCorp will post a net profit of Rs 1,024 crore, up 20 percent from the year-ago period.
Gupta added, “Moving forward, we expect the macro‐economic factors to aid the industry’s growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters. "
The Pawan Munjal-led firm logged quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,310 crore, which is 25 percent higher than last year’s fourth quarter. Its operating margin, a key measure of profitability, improved by 120 basis points on a year-on-year basis to 14.3 per cent, driven by its product mix, lower commodity costs, higher savings, and judicious price increases, as claimed by the company.
The two-wheeler major's quarterly volumes surged to 13.92 lakh units from 12.7 lakh units a year ago.
Meanwhile, Hero MotoCorp said that it will be driving "marketshare gains" on the back of product rollouts in the premium and 125cc segment during the last fiscal. The will also be going to boost scooter portfolio by launching Xoom 125 cc and Xoom 160 cc in first half of the fiscal.
"Coming year will see us taking big strides in EV, through product launches in mid and affordable segment. Overall, we see a very positive outlook for upcoming years," stated Gupta.
At 15:30 PM, Hero MotoCorp's shares were trading 2.9 percent higher at Rs 4,558 on NSE.
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