Hero MotoCorp Q4 FY2024 Results: Profit up 18%, Declares Dividend of Rs 40 per share

Synopsis:

Hero MotoCorp, India's biggest motorcycle manufacturer, reported a standalone profit of Rs 1,016 crore in the fourth quarter ending on March 31, 2024. This represents an 18 % increase compared to the profit of Rs 859 crore in the same period last year.

Quarter Result Performance

Hero MotoCorp, India's biggest motorcycle manufacturer had a good fourth quarter in the fiscal year ending March 31, 2024. They made a standalone profit of Rs 1,016 crore, which is 18% higher than last year's Rs 859 crore. Their revenue from operations for this quarter was Rs 9,519 crore, showing a growth of 15% compared to the same period last year. EBIDTA margin, a measure of profitability, was 14.3%, up by 120 basis points from last year. This improvement was because of a better product mix, lower costs for materials, higher savings and careful price adjustments.

When considering the company's overall performance including its subsidiaries, the consolidated revenue for the quarter was Rs 9,617 crore, a 14% increase over the previous year. The profit after tax for this period was Rs 943 crore, up 16% from last year.

To reward its shareholders, Hero MotoCorp announced a final dividend of Rs 40 per share. This is on top of interim and special dividends, totaling Rs 100 per share, which were given to commemorate the centennial year of the company's Chairman Emeritus, Dr. Brijmohan Lall Munjal. In total, for the fiscal year 2023-24, the company distributed dividends worth Rs 140 per share, which is equivalent to an astounding 7,000%.

In terms of sales, Hero MotoCorp sold 13.92 lakh units of motorcycles and scooters in the fourth quarter of FY24, compared to 12.70 lakh units in the same period last year. For the entire fiscal year, they sold 56.21 lakh units up from 53.29 lakh units in FY23.

Hero MotoCorp Management Commentary

Hero MotoCorp CEO Niranjan Gupta stated that the financial year 2024 was exceptional for the company. They achieved remarkable progress by focusing on product launches, upgrading their network and enhancing customer satisfaction which propelled them to new heights. Gupta emphasized their achievements including the highest number of product launches, expansion of new format retail outlets and rapid digital transformation for premium offerings. In the premium motorcycle segment, Hero MotoCorp made an impact by introducing six new products Xtreme 125R, Xtreme 200S, Harley Davidson X440, Xtreme 160R 4V, Karizma XMR and the Mavrick 440. This move positioned them for accelerated growth in the future.

Gupta also mentioned that they anticipate positive growth for the industry in the coming months. Factors like stable commodity prices, expected normal monsoons and increased government spending are seen as favorable conditions. They plan to capitalize on this by gaining more market share especially with their recent launches in the premium and 125 cc segments. Additionally, they aim to strengthen their scooter portfolio by introducing Xoom 125 cc and Xoom 160 cc in the first half of the fiscal year. Moreover, they are gearing up to make progress in the electric vehicle market with launches in the mid and affordable segments. Overall, they have a very optimistic outlook for the upcoming years.