Hero MotoCorp Q2 Results: Highest Ever Revenue, Profit On Sales Revival
Standalone net profit of India’s largest two-wheeler maker rose 14.2% year-on-year to Rs 1,204 crore in Q2 FY25 on the back of revenue that rose 10.8% to Rs 10,463 crore.
Hero MotoCorp Ltd. clocked its highest quarterly revenue and profit in July-September 2024 amid a sales revival seen in the hinterland.
Standalone net profit of India’s largest two-wheeler maker rose 14.2% year-on-year to Rs 1,204 crore in the three months ended 30 September, on the back of revenue that increased 10.8% to Rs 10,463 crore, according to an exchange filing on Thursday. Analysts polled by Bloomberg had pegged the topline at Rs 10,213 crore and the bottomline at Rs 1,152 crore.
Hero MotoCorp Q2 FY25 (Standalone, YoY)
Revenue up 10.8% at Rs 10,463 crore (Estimate: Rs 10,213 crore)
Ebitda up 14.1% at Rs 1,516 crore (Estimate: Rs 1,482 crore)
Margin up 40 basis points at 14.5% (Estimate: 14.5%)
Net profit up 14.2% at Rs 1,204 crore (Estimate: 1,152 crore)
One basis point is one-hundredth of a percentage point.
The quarterly performance came on the back of 15.2 lakh motorcycles and scooters sold in the three months through September, as against 14.6 lakh units in the year-ago period. That’s 7.35% growth on an annual basis. At Rs 1,456 crore, the parts, accessories and merchandise business also clocked its highest ever quarterly revenue.
“Our strong focus on cash management has resulted in us delivering a strong cash flow, strengthening our financial position even further,” Niranjan Gupta, chief executive officer at Hero MotoCorp, said in a statement accompanying the earnings.
“The recently concluded festive season saw us clocking our highest ever retail sales at 16 lakh units, backed by higher demand from the rural sector,” he said. “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 the two-wheeler industry in particular.”
During the quarter, Hero MotoCorp invested a further Rs 123.83 crore in Ather Energy Ltd., which has since filed draft papers for an initial public offering. The Delhi-based company, at present, holds 37.20% stake in the Bengaluru-based EV maker.
Hero MotoCorp’s own electric two-wheeler brand, Vida, clocked 6,000 units for the first time in August. Its market share in the EV space now stands at over 5%.
Elsewhere, the company expanded its global footprint to the Philippines during the quarter. That should boost sales outside of India, which has grown 30% year-to-date.
On Thursday, Hero MotoCorp shares rose 1.84% to Rs 4,604.30 apiece on the BSE even as the benchmark Sensex ended the day 0.14% lower at 77,580.31 points. The quarterly results were declared after market hours.
