Hero MotoCorp shares in focus after Q2 PAT, revenue see double-digit growth

Shares of India's leading two-wheeler maker Hero MotoCorp will be in focus today after the company reported 14% growth in its standalone net profit at Rs 1204 crore in the second quarter.

Revenue from operations in the reporting period rose 11% YoY to Rs 10463 crore.

The company reported an EBITDA of Rs 1516 crore in the reporting period, which was up about 14% YoY. Margins for the same period improved 40 bps to 14.5%.


The company also reported its highest-ever quarterly revenue from part, accessories, and merchandising at Rs 1456 crore.

"We have continued our exceptional performance in Q2 FY’25, once again creating a new high in both topline and bottomline. Our strong focus on cash management has resulted in us delivering strong cash flow, strengthening our financial position even further," said Niranjan Gupta, CEO, Hero MotoCorp.
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The company said its journey to build a powerful portfolio in premium segment is progressing with pace. As unveiled in EICMA, Hero will launch 3 more models in this segment in next 6 months ‐ Xpulse 210, Xtreme 250R and Karizma XMR 250.

Apart from portfolio, the company aims to continue to expand Premia stores targeting to cross 100 by the end of the current fiscal year.

"Our strong financials will allow us to now aggressively invest behind brand building," Hero said in a filing.

Volumes during the second quarter stood at 15.2 lakh units as against 14.16 lakh units in the last year period.

The recently concluded festive season saw it clocking its highest ever retail sales at 16 lakhs units, backed by higher demand from the rural sector.

The company said the strong monsoon will help the momentum in the industry going forward.

In the first half, the company reported a revenue growth of 13% YoY to Rs 20,607 crore, while PAT rose 24% YoY to Rs 2,326 crore.