Hero MotoCorp's Q2 earnings show a 47% YoY increase in net profit to Rs 1054 crore

2 Nov 2023 , 10:30 AM

Due to pricing increases and declining material costs, Hero MotoCorp, the nation’s largest two-wheeler manufacturer, exceeded street predictions on Wednesday and reported a 47% increase in net profit at Rs 1054 crore for the second quarter that ended on September 30, 2023.

According to a business filing with the markets, Hero MotoCorp Executive Chairman Pawan Munjal voluntarily took a compensation decrease even as the company reported a strong growth in net profit.

Munjal has offered to cut his fixed income by 20%. Earlier this year, Munjal chose to divide the responsibilities of Chairman and CEO, appointing Niranjan Gupta as the CEO. The board of the business gave their approval on Wednesday. 

Hero MotoCorp announced a net profit of Rs 716 crore for the same time in the previous fiscal year. Analysts had predicted that during the reviewed quarter, net profit would rise by a third to Rs 955 crore.

Operational revenues increased by 4.1% to Rs 9445.42 crore in the most recent quarter from Rs 9075 crore in the same period last year. In the most recent quarter, earnings before interest, tax, depreciation, and amortization (Ebitda) increased by 28% to Rs 1328 crore. Ebitda margins increased by 260 basis points to 14.1%, thanks to lower input costs, internal cost reductions, and a stronger product mix.

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