Hero MotoCorp.'s net profit rose in the third quarter of fiscal 2024 on higher sales. The world's largest two-wheeler maker's net profit increased 51% to Rs 1,073 crore in the quarter ended December, according to its exchange filing on Friday.
Hero MotoCorp Q3 FY24 (Standalone, YoY)
Revenue rose 21% to Rs 9,724 crore.
Operating profit increased 47% to Rs 1,362 crore.
Operating margin expands 250 basis points to 14% versus 11.5%.
The Splendor motorcycle-maker's sales rose 18% to 14.6 lakh units during the quarter. The two-wheeler maker said the expansion in margin was aided by lower commodity cost, leap savings, premiumisation and price hikes. "Moving forward, our margin shape will allow us to fuel our growth even more," Chief Executive Officer Niranjan Gupta said.
Parts Business Expansion
The company approved a Rs 600-crore investment over the next two years for setting up its second global parts centre. The decision came as its annualised revenue from parts accessories and merchandise crossed the Rs 5,000-crore mark.
The new facility in Andhra Pradesh will add 36,700 stock-keeping units to its overall capacity. Its existing global parts centre in Rajasthan has a storage capacity of up to 26,000 SKUs.
The Delhi-based company has expanded its electric vehicle presence to 100 cities and is building the charging infrastructure with Ather.
With plans to launch new products in the mid and affordable segment, Hero MotoCorp said it is well-placed to accelerate growth and clinch higher market share in the future.