Hero MotoCorp Q3 Results: Reports Muted Profit Growth On Lower Sales
Hero MotoCorp's Q3 revenue rose 2% to Rs 8,031 crore, against a forecast of Rs 8,063 crore.
Hero MotoCorp Ltd.’s third-quarter net profit rose despite lower sales, aided by price hikes and lower share of expenses.
The world’s largest two-wheeler maker’s net profit rose 4% to Rs 711.1 crore in the quarter ended December, according to its exchange filing. A consensus estimate of analysts tracked by Bloomberg had estimated it at Rs 718.4 crore.
Hero MotoCorp Q3 FY23 Highlights (YoY):
Revenue rose 2% to Rs 8,031 crore, against a forecast of Rs 8,063 crore.
Ebitda fell 4% to Rs 924.1 crore, compared to an estimate of Rs 961.7 crore.
Ebitda margin stood at 11.5% as against 12.2% last year, and an estimate of 11.9%.
The Splendor motorcycle-maker’s sales fell 4% year-on-year and 13% sequentially to 12.4 lakh units during the quarter, as demand for two-wheelers in the rural market remained weak.
“We have started recovering our market share and expect this journey to continue backed by exciting launches lined up over next few quarters, especially in the premium segment," Niranjan Gupta, chief financial officer at Hero MotoCorp, said in a statement. "This, coupled with our renewed focus on savings programme should also help in improving our margin profile, going forward."
The company is planning to roll out its recently launched electric scooter under the brand name Vida across multiple cities in FY24. Its R&D teams are working on accelerated portfolio expansion as well in the EV space, the company said.
The two-wheeler maker expects the Union budget's focus on capex investment and raising disposable income to augur well for the auto sector. It expects the two-wheeler industry to clock double-digit revenue growth in the upcoming financial year.
Shares of Hero MotoCorp ended 1.7% lower before the results were announced, compared with a 0.2% fall in the Nifty 50.