Hero MotoCorp Clocks Highest Ever Annual Profit, Revenue In FY24

Hero MotoCorp Ltd. has recorded its best-ever annual performance due to a long-awaited sales revival in the hinterland. The quarterly performance also met analysts' estimates.

Standalone net profit of the Splendor-maker rose 18.4% over the previous year to Rs 1,016 crore in the three months ended March 31, 2024, on the back of revenue that increased 14.6% to Rs 9,519 crore, according to an exchange filing on Wednesday.

Analysts polled by Bloomberg had estimated the top line at Rs 9,401.29 crore and the bottom line at Rs 1,048 crore.

• Revenue up 14.6% to Rs 9,519 crore (Estimate: Rs 9,401.29 crore).

• Ebitda up 25.5% to Rs 1,359 crore (Estimate: Rs 1,322.93 crore).

• Ebitda margin at 14.3% versus 13% (Estimate: 14.10%).

• Net profit up 18.4% to Rs 1,016 crore (Estimate: Rs 1,048 crore).

• Final dividend of Rs 40 per share declared.

Note: One basis point is one-hundredth of a percentage point.

For the full fiscal, net profit rose 36% year-on-year to Rs 3,968 crore on the back of revenue that increased 11% to Rs 37,456 crore. The operating profit—or earnings before interest, tax, depreciation and amortisation—rose 32% year-on-year to Rs 5,236 crore, even as the company enjoyed a profitability margin of 14.03%.

"Our fiscal prudence and strategic actions ensured that our financial performance has been robust, resulting in highest-ever annual revenue and profits," Niranjan Gupta, chief executive at Hero MotoCorp, said in a statement. "We see multiple tailwinds for the sector over the upcoming quarters. We will be driving market share gains on the back of our launches in premium and 125 cc segment done in FY24."

"The coming year will see us taking big strides in EV, through product launches in mid and affordable segment. Overall, we see a very positive outlook for upcoming years.”