The country's largest two-wheeler maker Hero MotoCorp Ltd on Friday (February 9) reported a 51% year-on-year (YoY) jump in net profit at ₹1,073.4 crore for the third quarter that ended December 31, 2023.
In the corresponding quarter last year,
Hero MotoCorp posted a net profit of ₹711 crore, the company said in a regulatory filing. CNBC-TV18 poll had predicted a profit of ₹1,015 crore for the quarter under review.
The company's revenue from operations increased 21.1% to ₹9,723.7 crore against ₹8,031 crore in the corresponding period of the preceding fiscal. CNBC-TV18 poll had predicted revenue of ₹9,555 crore for the quarter under review.
At the operating level, EBITDA jumped 47.4% to ₹1,362 crore in the third quarter of this fiscal over ₹924 crore in the corresponding period in the previous fiscal. CNBC-TV18 poll had predicted an EBITDA of ₹1,319 crore for the quarter under review.
The EBITDA margin stood at 14% in the reporting quarter against 11.5% YoY. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 13.7% for the quarter under review.
The board of directors declared an interim dividend of 3750%, i.e. ₹75 per equity share, and a special dividend of 1250% i.e. ₹25 per equity share, taking an overall interim dividend to 5000% i.e. ₹100 per equity share for the financial year 2023-24, marking the centennial year of Chairman Emeritus Dr. Brijmohan Lall Munjal.
Accordingly, the board has fixed February 21, 2024, as the record date for determining the entitlement of members for the purpose of payment of interim & special dividends. The payment of dividend or dispatch of dividend warrants will be completed by March 9, 2024.
The company's focus on Parts Accessories & Merchandise (PAM) business has led to the business crossing annualised revenue of Rs 5,000 crore. To support growth in this business, the company has planned for an expansion of its capacity with an outlay of ₹600 crore over a period of two years.
For this, the company will set up a Global Parts Center (GPC) 2.0 with a storage capacity of up to 36,700 Stock Keeping Units (SKUs), at Tirupati, Andhra Pradesh, the Hero MotoCorp added.
Niranjan Gupta, chief executive officer of
Hero MotoCorp, said, "The government's emphasis on infrastructure development while ensuring fiscal prudence in its recent interim budget, has created a conducive business and economic environment, which would facilitate higher growth and job creation."
The results came after the close of the market hours. Shares of Hero MotoCorp Ltd ended at ₹4,908.50, up by ₹98.55, or 2.05%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Feb 9, 2024 6:35 PM IST
