Hero MotoCorp Q4 results: Net profit jumps 37% to Rs 859 crore; revenue from operations up 12%

Hero MotoCorp on Thursday posted a 37 per cent year-on-year (YoY) rise in net profit, at Rs 859 crore, for the quarter that ended on March 31, 2023 (Q4 FY23). The bikemaker had recorded a profit of Rs 627 crore reported in the same period last year. The company's revenue from operations for the quarter stood at Rs 8,307 Crore against Rs 7,422 crore, reflecting a growth of 12 per cent.

EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin for Q4, the company said, was at 13 per cent, reflecting an improvement of 190 basis points (bps) YoY basis, driven by lower commodity costs, higher savings, and judicious price increases.

The two-wheeler maker's Board also approved a final dividend at 1,750 per cent, i.e., Rs 35 per share (face value of Rs 2 per equity share). The dividend would be paid by September 8, 2023.

Niranjan Gupta, Chief Executive of Hero MotoCorp, said, "The company has been able to drive margin expansion and profitable growth this quarter through a judicious combination of pricing, savings, and mix. In line with our policy, we have declared an overall dividend for the year at Rs 35 per share, which continues to be in the top quartile in terms of payout ratio."

EV transition

The company expected that its electric vehicle (EV) transition in the scooter segment would increase.

"We are accelerating our EV rollout, with a plan to be in 100 cities within this calendar year. Apart from exclusive Vida outlets in certain cities, we will be using our existing distribution system across cities to ensure wider reach. The recent price revision now makes Vida accessible to more customers, and we expect this will increase the EV transition in the scooter category," Gupta stated.

In terms of sales, the company sold 12.70 lakh units of motorcycles and scooters sold in Q4 FY23 against 11.89 lakh units in the year-ago period. During FY23, it sold 53.29 lakh units of motorcycles and scooters.

The company also informed that Jagmohan Singh Raju has been re-appointed as an Independent Director for a term of five years with effect from November 15, 2023, up to November 14, 2028. Further, the bikemaker said its 40th Annual General Meeting (AGM) would be held on August 9, 2023.

The Q4 numbers and other updates were announced post-market hours. Shares of Hero MotoCorp today settled 0.43 per cent higher at Rs 2,514.05.