India`s Hero MotoCorp beats Q3 profit view on festive demand
Hero MotoCorp, India's largest motorcycle maker, reported a bigger-than-expected 60% rise in third-quarter profit on Friday, helped by strong two-wheeler sales during the festive season.
Hero's standalone profit after tax rose year-on-year to 10.73 billion rupees ($129.3 million) in the three months to Dec. 31, beating analysts' average estimate of 10.42 billion rupees, per LSEG data.
Indian consumers tend to splurge during the festival period, regarded as an auspicious time for big-ticket purchases such as cars, two-wheelers and electronic goods, when companies offer promotional discounts.
The festive season, which usually begins in September, was delayed to October-November in 2023, driving Hero's total domestic sales up more than 17% to about 1.4 million units in the quarter.
The company also benefited from demand for its premium motorcycles, such as the X440 which it makes under a partnership with Harley Davidson, and caters to the affluent.
The 'Splendor' bike maker's revenue rose 21% to 97.24 billion rupees, surpassing estimates of 97.02 billion rupees.
($1 = 83.0108 Indian rupees)
