Hero MotoCorp reports robust growth in Q3 FY’24 with significant revenue and profit increase
In a remarkable financial performance for the third quarter of the fiscal year 2024, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, has reported impressive growth figures. The company announced a revenue of Rs. 9,724 crore and a net profit after tax (PAT) of Rs. 1,073 crore, marking a 51% increase in profitability. This performance underscores Hero MotoCorp’s strong market position and operational excellence.
During the quarter ending December 31, 2023, Hero MotoCorp achieved significant milestones, including the sale of 14.60 lakh units of motorcycles and scooters. The company’s revenue from operations saw a 21% increase compared to the previous year, reaching Rs. 9,724 crore. The earnings before interest, tax, depreciation, and amortization (EBITDA) for Q3 stood at Rs. 1,362 crore, reflecting a 47% growth.
Notably, Hero MotoCorp declared an interim dividend of Rs. 75 per share along with a special dividend of Rs. 25 per share, culminating in a total interim dividend of Rs. 100 per share. This move celebrates the centennial year of Chairman Emeritus Dr. Brijmohan Lall Munjal and highlights the company’s commitment to rewarding its shareholders.
Hero MotoCorp registers impressive Q3 FY’24 performance with a 51% PAT growth. Photo courtesy of Hero MotoCorp Ltd.
The company’s EBITDA margins improved by 250 basis points to 14%, driven by strategic commodity cost management, premiumization, and judicious price adjustments. Hero MotoCorp’s focus on the Parts Accessories & Merchandise (PAM) business has been fruitful, with the segment crossing an annualized revenue of Rs. 5,000 crore. To further support growth in this area, the company has planned a capacity expansion with an outlay of Rs. 600 crore.
Niranjan Gupta, CEO of Hero MotoCorp, emphasized the positive business environment fostered by the government’s focus on infrastructure development. He highlighted the company’s success in the premium segment and announced plans to fortify the premium portfolio further. Gupta also mentioned the expansion of Hero MotoCorp’s electric vehicle (EV) presence to 100 cities, in partnership with Ather, and teased upcoming product launches in the mid and affordable segments.
Hero MotoCorp’s recent product launches, including the Xtreme 125 R and Mavrick 440 motorcycles, have met with early success, demonstrating the company’s strong footing in the premium market.
The flagship Karizma XMR motorcycle received over 13,000 bookings, and the company commenced deliveries for the Harley-Davidson X440 across the country. Additionally, Hero MotoCorp achieved its highest-ever festive sales, recording more than 14 lakh (1.4 million) units in retail sales during the 32-day festive period.
Hero MotoCorp’s Q3 FY’24 performance is a testament to its robust business model and strategic initiatives. The company’s significant revenue and profit growth, combined with its dividend announcements and focus on the premium and EV segments, position it well for sustained growth and market share expansion. As Hero MotoCorp continues to innovate and adapt to changing consumer preferences, it is poised to maintain its leadership in the two-wheeler industry.