Yahoo Finance

• Quarterly Revenue: INR 10,463 crores, 11% year-on-year growth.

• Quarterly EBITDA: INR 1,516 crores, 14% growth.

• Quarterly PAT (Profit After Tax): INR 1,204 crores, 14% growth.

• Revenue from Parts, Accessories, and Merchandise: INR 1,456 crores, 7.5% year-on-year growth.

• Half-Year Revenue: INR 20,607 crores, 13% year-on-year growth.

• Half-Year EBITDA: INR 2,976 crores, 17.4% growth.

• Half-Year PAT: INR 2,326 crores, 24% growth.

• Cash from Operations (Half-Year): INR 2,817 crores, 160% increase over last year.

• EBITDA Margin (ICE Business): Improved by 160 basis points to 16.5%.

• Overall EBITDA Margin: Improved by 40 basis points to 14.5%.

• EV Business Investment: INR 175 crores.

• EV Market Share: 20% in 5 cities, 10% in 10 cities during the festive period.

• Festival Sales: 1.6 million units, 16% revenue growth over 32 days.

• Market Share (Festival Period): Improved to 31.6%.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:500182.

Release Date: November 15, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hero MotoCorp Ltd (BOM:500182) reported its highest-ever quarterly revenue of INR10,463 crores, reflecting a year-on-year growth of 11%.

• The company achieved its highest-ever quarterly EBITDA of INR1,516 crores, marking a growth of 14%.

• Hero MotoCorp Ltd (BOM:500182) recorded its highest-ever quarterly PAT of INR1,204 crores, also a growth of 14%.

• The company saw a significant improvement in its EBITDA margin for the ICE business by 160 basis points to 16.5%, driven by mix improvement and lower material costs.

• Hero MotoCorp Ltd (BOM:500182) achieved the highest-ever festival sales of 1.6 million units, with a 16% revenue growth during the festive period.

Negative Points

• There are concerns about asset quality in the two-wheeler financing sector, with some financiers reporting issues.

• Hero FinCorp, the company's financing arm, has seen an increase in delinquencies and collections slowing down, impacting profitability.

• The company continues to invest heavily in its EV business, which currently impacts overall EBITDA margins by 200 basis points.

• Despite strong festive sales, there is a concern about demand sustainability post-festive season, as seen in previous years.

• Hero MotoCorp Ltd (BOM:500182) faces competitive pressures with other OEMs offering discounts and cutting list prices.

Q & A Highlights

Q: How does Hero MotoCorp's festive season growth compare to the industry, and is demand sustaining post-festive season? A: Ranjivjit Singh, Chief Growth Officer, noted that Hero MotoCorp experienced a 13% growth during the festive season, outperforming the industry. The demand was strong across both rural and urban areas, and the positive trend is expected to continue, supported by upcoming marriage seasons and positive economic indicators.