Hero MotoCorp Q2 Results: Profit Jumps 47%, Beats Estimates On Higher Margin
Hero MotoCorp Ltd.'s second-quarter net profit rose beating analysts' estimates on higher average selling prices.
The two-wheeler maker's profit increased 47% over a year earlier to Rs 1,054 crore in the quarter ended September, according to an exchange filing on Wednesday. A consensus estimate of analysts tracked by Bloomberg had estimated a profit of Rs 955 crore.
Hero MotoCorp Q2 FY24 Highlights (Standalone, YoY)
Revenue rose 4% to Rs 9,445 crore (Estimate: Rs 9,343 crore).
Ebitda grew 28% to Rs 1,328 crore (Estimate: Rs 1,299 crore).
Margin at 14.1% versus 11.4% last year (Estimate: 13.9%).
The company's sales fell nearly 1% year-on-year to 14.17 lakh units in the quarter ended September.
"Our results for the second quarter as well as the first half of the fiscal reflect our continued financial discipline and prudent capital allocation, even as we ensure premiumisation of our portfolio," Niranjan Gupta, chief executive officer of the company, said in a press release.
The Splendor-maker saw its margin expand 270 points as compared with the previous fiscal. The company said this improved profitability will allow it to deploy necessary "fuel behind growth priorities".
Lower raw material costs were a key reason behind the margin expansion. The raw material costs as a percentage of revenue from operations fell to 68.6%, from 71.8% last year.
Shares of Hero MotoCorp ended flat at Rs 3,089 apiece before the results were announced, as compared with a 0.47% fall in the benchmark Nifty 50.
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