Hero MotoCorp reported profit after tax for Q2FY24 at Rs 1,054 crore, reflecting a growth of 47 per cent year-on-year over Rs 716 crore in the year ago period. The overall revenue from operations grew 4.1 per cent to Rs 9,445 crore as compared to Rs 9,075 crore in the corresponding quarter of FY23.
The EBITDA (earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at Rs. 1,328 crore, a growth of 28 per cent and margins came in at 14.1 per cent, improved by 260 bps over the corresponding quarter previous year, aided by commodity cost, leap savings, and product mix. The consolidated revenue and PAT for the quarter was Rs. 9,533 crore and Rs.1,007 crore respectively and for H1 Rs 18,384 crore and Rs1,708 crore respectively. The world’s largest manufacturer of motorcycles and scooters sold 14.16 lakh units of motorcycles and scooters in Q2 FY’24. Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp believes that supported by its relatively stronger macro‐economic fundamentals, India has continued to outperform most of the large global economies.
“A healthy festive demand across most categories and specifically in the auto sector has demonstrated the underlying propensity of the robustness of the market,” says Gupta who is hopeful that consumer confidence is coming back, which augurs well for the growth momentum moving forward.
As for the performance, Gupta points out that the results for the second quarter as well as the first half of the fiscal reflect the continued financial discipline and prudent capital allocation even as the company ensures premiumisation of our portfolio. “The premium range of products which have been launched across all key models have been received by the customers very well. Our strong margin shape will help us even more in deploying necessary fuel behind growth priorities,” says Gupta. He cautions though that the global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important.
At the same time, the medium-term outlook for India in general and auto industry in particular appears quite encouraging, according to Gupta.