MUMBAI – Hero MotoCorp on Friday reported a 51% year-on-year (YoY) growth in net profit for the quarter ended December to Rs 1,073.40 crore, which was largely on expected lines.

Revenue from operations grew 21% YoY in the quarter to Rs 9,724 crore and was higher than an ETnow poll of Rs 9,690 crore.

The board has recommended an interim dividend of Rs 75 a share for the current financial year, and a special dividend of Rs 25 a share to mark the centennial year of Chairman Emeritus Brijmohan Lall Munjal.

The board has fixed February 21 as the record date for determining eligible shareholders for the dividend payout. The payout is expected to be down by March 9, the automaker said.

Sequentially, the net profit rose 1.8% and revenue increased by just 3%.

The strong YoY growth in revenue was backed by higher volumes, as the company sold 14.6 lakh units in the last quarter, which was 18% higher than the last year. However, volumes
grew only 3% sequentially, and this restrained the sequential growth in revenue.

On the operational front, earnings before interest, taxes, depreciation and amortization or EBITDA for the quarter rose 48% YoY to Rs 1,363 crore, and margins expanded 251 basis points to 14.01%.

“EBITDA margins at 14% improved by 250 bps over the corresponding quarter previous year, aided by commodity cost, leap savings, premiumisation, and judicious price changes,” the automaker said in a release.

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, Hero MotoCorp has planned for an expansion of its capacity with an outlay of Rs 600 crore.

“We will keep fortifying our premium portfolio backed by strong brand building and best-in-class ‘phygital’ customer experience. Moving forward, our margin shape will allow us to fuel our growth even more,” said CEO Niranjan Gupta.

Hero MotoCorp expanded its electric vehicle (EV) presence to 100 cities in the country, and it is rapidly building the charging infrastructure in collaboration with Ather.

“In the coming fiscal, we will be launching new products in the mid-and affordable segment as well. We believe we are well-placed to accelerate growth and increase our market share as we move forward,” Gupta said.

For the nine months ended December, revenue rose 10% to Rs 27,936 crore, and net profit increased 44% to Rs 2,952 crore.

Ahead of the earnings, shares of Hero MotoCorp ended 2% higher on the BSE at Rs 4,908.50.

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