Views On Hero Motocorp Ltd. Q4FY24 Result by D. K. Mudaraddi, Research Analyst, StoxBox
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Below the Views On Hero Motocorp Ltd. Q4FY24 Result by D. K. Mudaraddi, Research Analyst, StoxBox
Q4FY24 results of Hero Motocorp reflects a healthy performance on all fronts. The company made prudent pricing changes during the quarter and focused on keeping realizations high. Commodity prices continue to stabilize and Hero has capitalized well on them. Almost all 6 of Hero’s launches during the year have been received well, especially the 3 Xtreme variants and Karizma XMR, which have pushed Hero in the right direction in premiumizing their portfolio. Hero’s marketing strategies with the expansion of Premia stores and the upgradation of existing stores to Hero 2.0 bode well for them as the increase in consumer interest and preference is bound to lead to higher market share. We’ll be closely monitoring Hero’s EV plans and the ramp up of VIDA. The company’s performance in the mid-weight segment where competition is the highest currently has been commendable, however, the market share changes will be watched closely to gauge consumer preference. Going forward, the expected revival of rural incomes and increase in government spending bodes well for the entry level motorcycle sector and Hero is poised to benefit from it.
Hero Motocorp Ltd. Q4FY24 Result First Cut – Revenue and PAT in-line; Higher ASPs on premium mix
* HMCL reported standalone revenue growth of 14.6% YoY / down 2.1% QoQ to Rs. 9,519 crores in Q4FY24, in line with market expectations, driven by 10% higher volumes YoY and a recovery in entry-level motorcycles.
* EBITDA growth was at 25.5% YoY / down 0.2% QoQ to Rs. 1,359 crores in Q4FY24 and the EBITDA margin expanded to 14.3% in the quarter compared to 13% in Q4FY23. This was driven by reduced commodity expense, a focus on premiumization, and higher ASPs due to price hikes taken during the year. ASPs rose ~10% YoY to Rs. 71,735 in Q4FY24.
* Net profit in Q4FY24 stood at Rs. 1,016 crores (up 18.3% YoY / down 5.3% QoQ), in line with street estimates. PAT margin in Q4FY24 stood at 10.7% (up 40bps YoY / down 30bps QoQ).
* Company had declared a final dividend of Rs. 40/share. Total dividend for the year comes to Rs. 140 per equity share i.e. 7000% of face value.
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