Profit before tax grew 36.41% year on year (YoY) to Rs 1,493.45 crore in the quarter ended 30 June 2024.
Earnings before interest, tax, depreciation & amortization (EBITDA) improved to Rs 1,460 crore in June 2024 quarter, recording a growth of 21% YoY. The EBITDA margin expanded over the previous year and stood at 14.4%.
Hero MotoCorp stated that it has witnessed positive trends across domestic, EV and global businesses during the quarter. The company also witnessed sequential improvement in retail sales (VAHAN). It expects the momentum to build up in the following quarters on account of positive customer sentiments, good monsoons and the upcoming festive season. The company has a slew of product launches planned in both ICE and EV categories.
Niranjan Gupta, chief executive officer (CEO), Hero MotoCorp, said, We continue to be on the profitable growth journey, crossing Rs 10,000 crore revenue for the first time ever, accompanied by highest ever underlying PAT. As we surge forward, we are investing behind long term capability building to ensure sustained delivery of growth in future.
We are seeing a sharp recovery in market share in 125 cc segment charged by the new model Xtreme 125 cc, while we continue to maintain formidable market share in entry and deluxe 100/110 cc segment of over 70% powered by our brands like Splendor, Passion, and HF deluxe. Our focus moving forward will be, building our brands in premium segment on the back of launches done in last few quarters, to win in this segment. We will be launching new models in scooters as well in next 2 qtrs, to re‐energise this portfolio.
We have seen now our EV brand Vida starting to increase its presence and market share, and we will be expanding portfolio into affordable segment within this fiscal. The overall economic indicators in India are promising, and the inclusive policies as well as capital allocation to infra and rural sector announced in union budget is expected to bolster demand. With inflationary pressures easing, consumer spending power is set to rise, further driving momentum as we gear up for a big festive season ahead.”
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters.
The scrip slipped 3.64% to Rs 5,049.95 on the BSE.
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