Hero MotoCorp Q4 Results: Auto Stock Soars 3% After Net Profit Jumps YoY; Declares 2000% Final Dividend

Hero MotoCorp, one of India's leading two-wheeler manufacturers, has accelerated its financial performance with an 18% surge in net profit, reaching Rs 1,016 crore for the quarter ending March 31, 2024. This growth was fueled by a combination of factors including robust volume expansion, an updated product mix, favourable commodity costs, and increased average selling prices (ASPs).

The company's Profit After Tax (PAT) during the fourth quarter of the previous financial year stood at Rs 859 crore, marking a notable upswing in its recent quarterly performance. Hero MotoCorp's revenue also experienced a significant uptick, climbing by 15% to reach Rs 9,519 crore in Q4FY24, compared to Rs 8,307 crore in the same period last year.

Among Hero MotoCorp's renowned models driving this growth are the Splendor Plus, HF Deluxe, Passion Plus, and Pleasure Plus. These stalwarts continue to attract consumers, contributing to the company's upward trajectory in both revenue and profitability.

The quarterly results reported by Hero MotoCorp closely aligned with the projections of market analysts. The average estimates of nine brokerage firms anticipated a net profit of Rs 1,024 crore, reflecting a 20% increase from the previous year.

Commenting on the company's future outlook, Hero MotoCorp's Chief Executive Officer (CEO), Niranjan Gupta expressed optimism, stating, "Moving forward, we expect the macro-economic factors to aid the industry's growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters."

In terms of operational performance, Hero MotoCorp reported quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 1,310 crore. This figure marks an increase of 14.3% from Rs 1,083 crore recorded in the same period last year.

The positive trajectory exhibited by Hero MotoCorp not only reflects its individual success but also mirrors broader trends within the Indian automotive industry. With its strong performance in the recent quarter, Hero MotoCorp has reaffirmed its position as a key player in the Indian two-wheeler market.

Hero MotoCorp announced a final dividend of Rs 40 per share, translating into a 2000% dividend against the face value of Rs 2 per equity share. The board's decision was disclosed alongside plans for the company's 41st Annual General Meeting (AGM), pending shareholder approval.

Adding to the windfall, Hero MotoCorp had earlier declared an interim dividend of Rs 100 per equity share, commemorating the centennial year of its late Chairman Dr Brijmohan Lall Munjal. With this final dividend announcement, the aggregate total dividend for the fiscal year 2023-24 hits Rs 140 per equity share, marking a 7000% dividend.

Niranjan Gupta, the Chief Executive Officer (CEO) of Hero MotoCorp, highlighted the company's accomplishments during the fiscal year, emphasizing a strategic focus on product launches, network expansion, and customer satisfaction. Gupta noted, "During the year, our focus on product launches, network upgrades and customer satisfaction drove us to new heights. From the highest number of product launches to the expansion of new format retail outlets and upgrade at super speed, to a digital‐first approach in premium, we set the building blocks in place for accelerated growth in future."

Looking ahead, Hero MotoCorp is gearing up for further market penetration, especially in the premium and 125cc segments. The company aims to bolster its scooter portfolio with the launch of Xoom 125cc and Xoom 160cc models in the first half of the fiscal year. Additionally, Hero MotoCorp is poised to make significant strides in the electric vehicle (EV) market, with plans to introduce new EV offerings in the mid and affordable segments.

Expressing confidence in the company's prospects, Gupta affirmed, "Coming year will see us taking big strides in EV, through product launches in mid and affordable segment. Overall, we see a very positive outlook for upcoming years."

Investors responded favourably to Hero MotoCorp's announcements, with the company's shares closing Wednesday's trading session with gains of nearly 3% at Rs 4,558 on the National Stock Exchange (NSE). Over the past year, Hero MotoCorp's stock has demonstrated remarkable performance, surging by nearly 75%.