Hero MotoCorp revealed on November 1st that its net profit for the quarter ending September 30, 2023, increased by 47% to Rs 1,054 crore. The large two-wheeler company had declared a profit of Rs 716 crore for the previous year.
Rises in prices and falling commodity costs drove Q2FY24’s net profit rise.
The company’s earnings topped analysts’ projections, which were for profits to increase by 33% year over year to Rs 955 crore in Q2FY24 from Rs 716 crore in Q2FY23, based on five brokerage estimates.
Compared to Rs 9,075 crore during the same period last fiscal year, the New Delhi-based company’s revenue from operations climbed by 4.1 percent to Rs 9,445.42 crore in the quarter under review.
Chief Executive Officer (CEO) of Hero MotoCorp Niranjan Gupta commented on the outcomes, saying: “A robust market has been shown by the healthy holiday demand in most categories, particularly in the auto sector. The return of consumer confidence is positive for the momentum of GDP going forward.
Hero MotoCorp’s operating margin, or profits before interest, depreciation, taxes, and amortisation (EBIDTA), increased by 27.9 percent to Rs 1,328.3 crore in the September 2023 quarter compared to Rs 1,038 crore recorded during the same period in the previous year. Its operating margin increased from 11.4 percent in Q2FY23 to 14.1 percent in Q2FY24, an increase of 270 basis points.
Additionally, according to Gupta, the company’s performance in the second quarter and first half of the fiscal year demonstrate its ongoing commitment to sound capital allocation and financial discipline while maintaining portfolio “premiumization.”