Hero MotoCorp Q3 Results: Profit beats estimates; board declares ₹100 dividend

Hero MotoCorp reported a 12.1% year-on-year (YoY) rise in net profit for the third quarter of FY24, with earnings coming in at ₹1,202.8 crore, surpassing market estimates.

Analysts polled by CNBC-TV18 had projected a net profit of ₹1,110 crore, making this a better-than-expected performance for the world’s largest two-wheeler manufacturer.

Revenue from operations grew 5% YoY to ₹10,210.8 crore, slightly ahead of the expected ₹10,135 crore. The company also delivered a strong operating performance, with EBITDA rising 8.4% YoY to ₹1,476.5 crore, exceeding the estimated ₹1,434 crore.

The EBITDA margin expanded to 14.5%, both on an annual and sequential basis, outpacing the estimated 14.1%.

The company’s steady margin improvement comes on the back of cost-saving initiatives and operating efficiencies, even as raw material prices remained a factor to watch. With the ongoing recovery in rural demand and a positive festive season impact, Hero MotoCorp’s performance signals resilience amid evolving industry dynamics.

The board of director also announced an interim dividend of ₹100 per share.

Shares of Hero MotoCorp closed nearly 1% lower at ₹4,235 apiece on the BSE on Tuesday, reflecting cautious investor sentiment ahead of the earnings announcement.