Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, today reported strong financial results for the third quarter ended December 31, 2023.
Hero MotoCorp has been recovering well after pandemic-related disruptions. After decline in sales in 2020 and 2021 due to COVID-19, the company witnessed recovery in 2022 selling over 50 lakh units. Healthy demand momentum has continued into 2023 as well.
The company’s revenue from operations grew by 21% year-on-year to Rs 9,724 crore compared to Rs 8,031 crore in the same quarter last year. Profit after tax (PAT) jumped 51% to Rs 1,073 crore from Rs 711 crore.
EBITDA margins improved significantly by 250 basis points to 14% aided by commodity cost savings, premiumisation and price increases.
For the nine months ended December 2023, Hero MotoCorp’s revenue stood at Rs 27,936 crore, up 10% while PAT grew 44% to Rs 2,952 crore.
The company sold 14.60 lakh units of motorcycles and scooters in the third quarter, while total sales for the April-December 2023 period were at 42.29 lakh units.
Hero MotoCorp declared an interim dividend of Rs 100 per share, including a special dividend of Rs 25 per share commemorating the centennial year of Chairman Emeritus Dr Brijmohan Lall Munjal.
The company is expanding capacity for its Parts, Accessories and Merchandise (PAM) business which has crossed Rs 5,000 crore in annual revenues. Hero will invest Rs 600 crore over two years to set up a Global Parts Center in Andhra Pradesh.
On the EV front, Hero has expanded presence across 100 cities and is rapidly building charging infrastructure with Ather Electric. New EV models across price segments will be launched next fiscal.
“We believe we are well placed to accelerate growth and increase our market shares as we move forward,” said Niranjan Gupta, CEO, Hero MotoCorp.