Hero MotoCorp, India’s largest two-wheeler maker, surpassed street estimates with a 14% year-on-year (Y-o-Y) growth in its net profit for the September quarter, driven by a surge in two-wheeler volumes.
The Pawan Munjal-led company firm recorded Rs 1,204 crore as net profit, beating the Bloomberg estimate of Rs 1,152 crore.
Revenue from operations at the standalone level rose 11% Y-o-Y to Rs 10,463 crore, surpassing the estimated Rs 10,213 crore. The company recorded sales of 1.52 million two-wheelers during the quarter, marking a 7% y-o-y growth.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin for the quarter expanded over the previous year by 40 bps and stood at 14.5%.
The company will launch 3 more models in the entry and deluxe segment over the next 6 months, Xpulse 210, Xtreme 250R and Karizma XMR 250.
“Our strong financials will allow us to now aggressively invest behind brand building. We are also planning a slew of launches in the scooter segment, covering both ICE and EV. We will have 3 models coming in ICE scooters by March 2025,” Niranjan Gupta, CEO, Hero MotoCorp said.
The company claimed that the recently concluded festive season saw it clocking its highest-ever retail sales at 1.6 million units, backed by higher demand from the rural sector.
“We believe that the strong monsoon will help the momentum in the industry going forward. The fundamentals look good for the Indian economy in general and two-wheeler industry in particular,” Gupta added.
