Hero MotoCorp shares in spotlight after Q2 revenue jumps 11%, PAT surges 14%

Shares of Hero MotoCorp surged over five per cent during Monday's trading session after the two-wheeler giant posted solid Q2 results for the September 2024 quarter. Brokerages remain optimistic on the stock, projecting a potential upside of up to 30 per cent.

The two-wheeler giant reported a 14 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,204 crore, beating the estimated Rs 1,160 crore. Revenue from operations increased by 10.8 per cent YoY, reaching Rs 10,463 crore, higher than the projected Rs 10,256 crore.

Operational performance

The company posted an EBITDA of Rs 1,516 crore, marking a 14 per cent YoY growth and in line with analysts’ expectations. Margins improved by 40 basis points to 14.5 per cent slightly below the estimated 14.7 per cent. This robust performance is attributed to the company’s focus on enhancing operational efficiency and better sales mix.

Hero MotoCorp reported its highest-ever quarterly revenue from parts, accessories, and merchandising at Rs 1,456 crore, showcasing the success of its diversified offerings. Volumes for the quarter stood at 15.2 lakh units, up from 14.16 lakh units in the same period last year.

The company achieved its highest-ever retail sales during the festive season, recording sales of 16 lakh units, driven by strong rural demand. Hero MotoCorp believes the robust monsoon will further support industry momentum in the coming quarters.

Looking ahead, Hero MotoCorp is accelerating its strategy in the premium segment. The company recently unveiled plans to launch three new models—Xpulse 210, Xtreme 250R, and Karizma XMR 250—over the next six months, following their showcase at EICMA. Additionally, the company aims to expand its Premia store network, targeting over 100 outlets by the end of FY25.

"Our strong financials will allow us to now aggressively invest behind brand building," the company stated in its earnings release.

In the first half of FY25, Hero MotoCorp’s revenue grew 13 per cent YoY to Rs 20,607 crore, while net profit surged 24 per cent to Rs 2,326 crore.