Hero MotoCorp Q4 Results: Profit Beats Estimates On Lower Expenses
Hero MotoCorp's revenue rose 12% to Rs 8,307 crore, as compared with an estimate of Rs 8,241 crore.
Hero MotoCorp Ltd.'s net profit rose and beat estimates in the fourth quarter on higher sales, lower expenses and better average selling prices.
The two-wheeler maker's net profit rose 37% to Rs 859 crore in the quarter ended March, according to its exchange filing. A consensus estimate of analysts tracked by Bloomberg had estimated it at Rs 730.6 crore.
Hero MotoCorp Q4 FY23 Highlights (YoY):
Revenue rose 12% to Rs 8,307 crore, as compared with an estimate of Rs 8,241 crore.
Ebitda rose 31% to Rs 1,083 crore, as against a forecast of Rs 985 crore.
Ebitda margin stood at 13% versus 11.2% last year, and an estimate of 12%.
The Splendor motorcycle-maker's sales rose 6.9% year-on-year and 2.5% sequentially to 11.9 lakh units, with a gradual pick-up in demand in rural markets.
The company's total expenses rose 9% as compared with a 12% jump in revenues, aiding the expansion in operating margins by 180 basis points.
"The company has been able to drive margin expansion and profitable growth this quarter through a judicious combination of pricing, savings, and mix," Niranjan Gupta, the newly elevated CEO of the company, said in a release.
The company said it is accelerating its EV rollout, with a plan to be in 100 cities in 2023. It will utilise exclusive stores for its brand Vida, along with the existing distribution network.
Economic activity in India continues to build momentum with key indicators moving in a positive direction, Gupta said. Hero MotoCorp expects the two-wheeler industry revenue growth to be in double digits in FY24.
Shares of Hero MotoCorp ended 0.3% higher before the results were announced, as compared with a 0.9% rise in the benchmark Nifty 50.