Hero MotoCorp Shares Zoom 6% on Strong Q2 FY25 Earnings

On November 18, 2024, Hero MotoCorp share price surged up to 6%, reaching a high of ₹4,835.90, following the release of the company’s financial results for the quarter (Q2 FY25) and the half-year period (1H FY25) ending September 30, 2024. The stock opened at ₹4,801.05, signalling positive investor sentiment driven by the company’s strong performance in Q2FY25.

Financial Performance: Strong Growth Across Key Metrics

Hero MotoCorp reported solid financial growth for both the quarter and the first half of FY25.

• Quarterly Revenue: The company posted ₹10,463 Crore in revenue, an 11% increase compared to ₹9,445 Crore in the same period the previous year.
• Half-Year Revenue: For H1 FY25, Hero MotoCorp reported ₹20,607 Crore in revenue, reflecting a 13% growth from ₹18,213 Crore in H1 FY24.

Additionally, the company achieved its highest-ever quarterly revenue from Parts, Accessories, and Merchandising, with ₹1,456 Crore in revenue, marking another milestone.

Profitability: Margin Expansion and Strong PAT Growth

Hero MotoCorp’s profitability showed impressive gains:

• Quarterly EBITDA Margin: The company’s EBITDA margin expanded by 40 basis points year-on-year, standing at 14.5%.
• Quarterly Profit After Tax (PAT): The company reported a PAT of ₹1,204 Crore, a 14% increase from the same period last year.

For the half-year period:

• H1 EBITDA Margin: The EBITDA margin grew by 50 basis points, reaching 14.4%.
• H1 PAT: PAT for H1 FY25 stood at ₹2,326 Crore, reflecting a 24% growth over the same period last year.

Consolidated results for the quarter showed a revenue of ₹10,483 Crore and PAT of ₹1,066 Crore. For H1 FY25, consolidated revenue and PAT were ₹20,694 Crore and ₹2,099 Crore, respectively.

New Product Launches: Expanding the Portfolio

During Q2 FY25, Hero MotoCorp unveiled a range of new models, further enhancing its product portfolio:

• Motorcycle Launches:
  • Xpulse 210, designed for off-road and adventure enthusiasts.
  • Xtreme 250R, catering to the street and track riding segments.
  • Karizma XMR 250, a new addition to its performance motorcycle range.
• Electric Mobility: The company launched the VIDA Z, an electric scooter that combines performance and sustainability for environmentally conscious customers.

Operational Milestones and International Expansion

Hero MotoCorp also made significant strides in its operations during the quarter:

• Record Monthly Sales: In August 2024, the company crossed 6,000 monthly sales units for the first time, with its retail market share growing to over 5%, according to VAHAN data.
• Southeast Asia Expansion: The company marked its entry into the Southeast Asian market by launching operations in the Philippines, expanding its international footprint.
• Global Sales Growth: Hero MotoCorp registered a 30% year-to-date growth in its global business sales, reflecting the growing demand for its products across international markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.