Hero MotoCorp Q2 Results: Net profit increases by 47% to Rs 1,054 cr, revenue surges 4%

Hero MotoCorp, the world’s largest two-wheeler manufacturer, on Wednesday reported a net profit of Rs 1,054 crore, which is 47 per cent increase year-on year. Its net profit was at Rs 716 crore in the year-ago period. Revenue from operations increased 4 per cent in Q2 FY24 to Rs Rs 9445.42 crore. The net profit growth in Q2FY24 was driven by higher prices and easing commodity costs.

Hero MotoCorp sold 1.42 million units in the September quarter, compared to 1.35 million units a quarter ago. The Profit Before Tax was Rs 1,397 crore in Q2 FY24, a surge of 45 per cent. 

Earnings before interest, taxes, depreciation and amortization or EBITDA for the quarter increased by 28 per cent on year to Rs 1,328.29 crore. This saw a surge on the back of easing input costs, price hikes, and a favourable product mix.

"A healthy festive demand across most categories and specifically in the auto sector has demonstrated the underlying propensity of the robustness of the market. The consumer confidence is coming back, which augurs well for the growth momentum moving forward," Niranjan Gupta, Chief Executive Officer (CEO), Hero MotoCorp, said in an exchange filing. 

Highlights of Q2 results

> Strengthened its premium portfolio by launching the codeveloped premium motorcycle – Harley-Davidson X440

> Launched the iconic Karizma in its all-new avatar – TheKarizma XMR

> Augmented the premium portfolio with the launch of the new Xtreme 200S 4

> Received more than 25,000 bookings for the HarleyDavidson X440, the company had closed the online booking window for the initial set of customers on August 3 2023

> Hero Passion emerged as the third Hero MotoCorp motorcycle to join Hero Splendor and Hero HF in the top ten motorcycles of the country for two consecutive months.

October sales 

Earlier in the day, Hero MotoCorp said the auto major saw a 26.5 per cent increase in total sales at 5,74,930 units in October 2023, as compared to 4,54,582 units in the same month last year.

Motorcycle sales were at 5,29,341 units last month, as compared to 4,19,568 units in October 2022, up 26.2 per cent, Hero MotoCorp said in a regulatory filing.

Scooter sales stood at 45,589 units in the month under review, as compared to 35,014 units in the year-ago month, a growth of 30.2 per cent, it added. Exports of two-wheelers grew 29 per cent last month at 15,164 units, as against 11,757 units in the year-ago period.

Hero MotoCorp commenced the deliveries of its first co-developed premium motorcycle, the Harley-Davidson X440, on the first day of the Navratri festival. Under the mega deliveries drive, 1,000 units were sold across 100 dealerships in India.

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