India’s largest two-wheeler manufacturer Hero MotoCorp beat analyst estimates to deliver a 37% YoY rise in standalone net profit to ₹859 crore in Q4, aided by price hikes, cost cutting and improved product mix. The company posted a 17% growth in its FY23 net profit, which rose to ₹2,911 crore.
Hero MotoCorp’s revenue growth during Q4 came in at 11.9% YoY at ₹8,307 crore, while for the full FY23, it reported a growth of 17.7% to ₹33,806 crore.
The impact of the triple drivers of its net profit growth during Q4 – price hikes, cost cutting and improved product mix – also reflected in the company’s net margins, which rose by 190 basis points to 10.3% from 8.4% a year ago. However, for the full FY23, net margins improved only a tad to 8.6% from 8.5% in FY22.
The company declared a final dividend of ₹35 per share, with the total dividend for FY23 touching ₹100.
Commenting on the company’s performance, Hero MotoCorp CEO Niranjan Gupta said the company has been able to drive margin expansion and profitable growth this quarter through a judicious combination of pricing, savings, and product mix.
“In the coming fiscal year, we have lined up a slew of product launches in different segments with an aim to strengthen our premium portfolio as well as premiumisation of existing models, which will help us deliver improvement in market share,” he added.
The company is also accelerating its EV rollout, with a plan to be in 100 cities within this calendar year, Gupta said.
“Apart from exclusive Vida outlets in certain cities, we will be using our existing distribution system across cities to ensure wider reach. The recent price revision now makes Vida accessible to more customers, and we expect this will increase the EV transition in scooter category,” he added.
Gupta noted that the economic activity in India continues to build momentum with key indicators moving in the positive direction.
“We do expect two-wheeler industry revenue growth to be double-digit in the coming year,” he stated.
Shares of the company ended 0.43% up at ₹2,514.05 apiece on the BSE.
