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Informist, Tuesday, May 13, 2025

 

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--Hero MotoCorp Jan-Mar net profit INR 10.81 bln
--Analysts saw Hero MotoCorp Jan-Mar net profit INR 10.95 bln
--Hero MotoCorp Jan-Mar net profit INR 10.81 bln vs INR 10.16 bln year ago
--Hero MotoCorp Jan-Mar revenue INR 99.39 bln vs INR 95.19 bln year ago
--Hero MotoCorp to pay INR 65 per share final dividend
--Hero MotoCorp FY25 net profit INR 46.10 bln vs INR 39.68 bln year ago
--Hero MotoCorp FY25 revenue INR 407.56 bln vs INR 374.56 bln year ago
--Hero MotoCorp Jan-Mar EBITDA INR 14.16 bln, up 4% on year
--Hero MotoCorp FY25 EBITDA INR 58.68 bln, up 12% on year
--Hero MotoCorp shares at INR 4,024.60, up INR 39.70 or 1%
--Hero MotoCorp shares rise sharply; now up 1% vs 0.1?rlier
--Hero MotoCorp FY25 EBITDA margin 14.4%, up 40 bps on year
--Hero MotoCorp: Remain optimistic about near to mid term outlook
--Hero MotoCorp: Observing strong retail traction in premium offerings
 

 

By Rajesh Gajra

 

NEW DELHI – Earnings growth momentum of two-wheeler maker Hero MotoCorp Ltd. slowed in the Jan-Mar quarter, with net profit coming in below analysts' estimates. Revenue, however, beat the Street's view. The company reported a 6.4% on-year increase in net profit to INR 10.81 billion and a 4.4% increase in revenue from operations to INR 99.39 billion.

 

The on-year net profit growth was the lowest in nine quarters and revenue growth lowest in six quarters, indicating a slowing growth momentum. Analysts had estimated Hero MotoCorp's net profit at INR 10.95 billion and revenue from operations at INR 97.40 billion.

 

Hero MotoCorp sold 1.38 million motorcycles and scooters in the March quarter, according to a press release by the company on the earnings. The operating profit slackened in the March quarter, with the earnings before interest, tax, depreciation, and amortisation growing at a low rate of 4% on year to INR 14.16 billion.

 

For the financial year 2024-25 (Apr-Mar), the company recorded a net profit growth of 16% to INR 46.10 billion and a 9% increase in revenue from operations to INR 407.56 billion. The EBITDA for FY25 increased 12% to INR 58.68 billion, with EBITDA margin inching up 40 basis points to 14.4%.

 

The company announced a final dividend of INR 65 per share. It disclosed its March quarter earnings during market hours on Tuesday and shares of Hero MotoCorp rose 1% in reaction to INR 4,024.60 on the National Stock Exchange. The shares closed at INR 4,063.60, up 2% from the previous close.

 

Hero MotoCorp's subdued growth in EBITDA for the March quarter was due to a near 5% on-year increase in cost of raw materials to INR 63.94 billion. This was the largest cost component, accounting for 73% of the company's total expenses. Even though the increase in expenses was not high, it was more than the revenue growth of 4.4%, which dragged EBITDA growth.

 

The bottom line performance largely tracked EBITDA growth but was affected by an 8.4% increase in tax expenses to INR 3.62 billion in the March quarter.

 

"The company was observing strong retail traction, especially in our new premium and scooter offerings," Vikram Kasbekar, the executive director and acting chief executive officer of the company, said in the press release.

 

The company is optimistic about the near- to mid-term outlook and key macroeconomic indicators, Vivek Anand, chief financial officer, said in the press release.  End

 

Edited by Nishant Maher

 

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