Hero MotoCorp's Q3 Net Profit Surges 51% to ₹1,073.40 Crore, Declares Dividend

12 Feb 2024 , 03:27 AM

Hero MotoCorp reports a 51% YoY growth in net profit for Q3 to ₹1,073.40 Crore, aligning with expectations. Revenue from operations sees a 21% YoY growth in the quarter, reaching ₹9,724 Crore, surpassing an ETnow poll of ₹9,690 Crore.

The board recommends an interim dividend of ₹75 per share and a special dividend of ₹25 per share, marking the centennial year of Chairman Emeritus Brijmohan Lall Munjal.

February 21 is set as the record date for eligible shareholders, and the dividend payout is expected by March 9.

Sequentially, net profit rises by 1.8%, and revenue increases by 3%. Higher volumes contribute to strong YoY revenue growth, with the company selling 14.6 lakh units in the last quarter, an 18% increase from the previous year. However, sequential volume growth is 3%.

EBITDA for the quarter rises 48% YoY to ₹1,363 Crore, with margins expanding 251 basis points to 14.01%.

The focus on Parts Accessories & Merchandise (PAM) business propels annualized revenue to ₹5,000 Crore. Hero MotoCorp plans a capacity expansion with a ₹600 Crore outlay to support PAM business growth.

CEO Niranjan Gupta emphasizes fortifying the premium portfolio, brand building, and enhancing customer experience. He expresses confidence in accelerating growth and increasing market share in the coming fiscal year.

Hero MotoCorp extends its EV presence to 100 cities in India and collaborates with Ather for rapid charging infrastructure development. Revenue rises by 10% to ₹27,936 Crore, and net profit increases by 44% to ₹2,952 Crore for the nine months ended December.

Hero MotoCorp, headquartered in Delhi, holds a market share of about 46% in the Indian two-wheeler industry. As of May 27, 2021, the market capitalization stands at ₹59,600 Crore.

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