Hero MotoCorp Q3 Results: Net profit jumps 51% to Rs 1,073 crore, meets analysts' estimates; board declares dividend

Hero MotoCorp on Friday reported a standalone net profit of Rs 1,073.4 crore for the October-December period, marking a jump of 51 per cent on a year-on-year basis that was in line with analysts' expectations.

The auto major registered revenue of Rs 9,723.7 crore for the fiscal third quarter, as against Rs 8,031 crore for the corresponding period a year ago, according to a regulatory filing.

Zee Business analysts had estimated Hero MotoCorp's quarterly net profit at Rs 1,050 crore and revenue at Rs 9,750 crore.

Hero MotoCorp said its EBITDA margin expanded by 250 basis points on a year-on-year basis to 14 per cent for the December quarter "aided by commodity costs, leap savings, premiumisation and judicious price changes". Zee Business analysts had pegged the motorcycle maker's third-quarter margin at 14.1 per cent. 

“The government's emphasis on infrastructure development, while ensuring fiscal prudence in its recent interim budget, has created a conducive business and economic environment, which would facilitate higher growth and job creation. Our recent launches in premium segment have met with early success, and we are ramping up the capacity of our upper premium models," said Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp. 

"At the Hero World event in January, we unveiled two more premium motorcycles, Xtreme 125 R and Mavrick 440. We will keep fortifying our premium portfolio backed by strong brand building and best in class ‘phygital’ customer experience. Moving forward, our margin shape will allow us to fuel our growth even more," Gupta said. 

He also said the company has expanded its EV presence to 100 cities in the country and is "rapidly building the charging infrastructure in collaboration with Ather".

Hero MotoCorp received more than 13,000 bookings for its flagship motorcycle Karizma XMR, and commenced deliveries for the Harley-Davidson X440 motorcycle across the country, the company said in a statement. 

The auto maker recorded its highest-ever festive sales, with more than 14 lakh units in retail sales during the 32-day festive period, it added. 

Hero MotoCorp shares ended 2.1 per cent stronger at Rs 4,908.5 apiece on BSE ahead of the earnings announcement. 

Hero MotoCorp dividend

Hero MotoCorp said its board approved a total interim dividend of Rs 100 per share, comprising an interim dividend of Rs 75 per share and a special dividend of Rs 25 per share.

The dividend was to mark "the centennial year of Chairman Emeritus Dr Brijmohan Lall Munjal", the company said.   

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