Hero MotoCorp’s standalone profit surged by 14% year-on-year, reaching 12.04 billion rupees ($142.6 million) for the quarter ending Sept. 30, surpassing analysts’ expectations of 11.54 billion rupees, according to LSEG data. These results exclude the performance of subsidiaries and associates, including IPO-bound Ather Energy and Hero FinCorp.
The company saw a 7% increase in sales volumes, driven by a 16% rise in sales of its mid-range motorcycles, such as the “Xtreme 125R.” This segment now contributes 12.6% to total sales, up from 11.6% last year. Entry-level motorcycles like the “Splendor” continued to dominate, accounting for 75% of overall sales.
Hero’s revenue grew by 11% to 104.63 billion rupees, surpassing the analyst estimate of 102.18 billion rupees, thanks to higher sales and successful launches of premium models like the “Karizma XMR.”
CEO Niranjan Gupta confirmed plans to introduce three more premium models, including the Xpulse 210, Xtreme 250R, and Karizma XMR 250, in the next six months, along with three new scooters by March 2025.
The company also achieved its highest-ever retail sales during the October-November festive period, driven by stronger demand from rural areas, which make up over half of India’s two-wheeler market.
Hero’s EBITDA margin increased to 14.5% from 14.1% year-on-year. Shares of Hero MotoCorp closed 1.9% higher ahead of the earnings report.
($1 = 84.4280 Indian rupees)
