Hero MotoCorp Q3FY25 net profit up 1.55% y-o-y led by premiumisation, higher sales

Riding on higher sales and premiumisation in its portfolio, Hero MotoCorp on Thursday reported a consolidated net profit of ₹1,108 crore for the third quarter (Q3) ended December, a year-on-year (y-o-y) growth of 1.55 per cent as compared with ₹1,091 crore in the corresponding period last fiscal year (FY).

“The performance in this quarter and fiscal year, reflects the successful execution of our strategic priorities. Demonstrating strong year-to-date results in both top-line and bottom-line growth, we have achieved the highest-ever nine-month revenue and profits,” Vivek Anand, Chief Financial Officer, Hero MotoCorp, said.

Its consolidated revenue from operations also jumped five per cent y-o-y to ₹10,260 crore in the October-December quarter in FY25 as compared with ₹9,788 crore in the same period in FY24.

The company sold 14.64-lakh units of motorcycles and scooters in Q3 FY25, marginally higher as compared with 14.60-lakh units Q3 FY24, it said.

The results meet the street predictions as analysts had also predicted for a steady performance with revenue growth driven by higher average selling prices rather than volume growth, supported by a richer product mix and the ramp-up of 125cc motorcycles.

Last month, the outgoing CEO, Niranjan Gupta had also said that the company has now got “all the ingredients” to grow its market in all the key five premium brands – Xtreme, Xpulse, Mavrick, Karizma and Harley-Davidson X440 – with new product launches in Bharat Mobility Global Expo.

The company is also expanding its premium stores called ‘Premia’ to 100 stores before June-end, and then will continue to increase that number in the coming months.

Last week, the company announced that Gupta has stepped down as the CEO of the company effective April 30, 2025, after which Vikram Kasbekar who is currently the Executive Director will be an Acting CEO.

Meanwhile, Hero MotoCorp also informed that the Board of the company has approved interim dividend of 5000 per cent — ₹100 per equity share, having nominal value of ₹2 each for the financial year 2024-25. The Board has fixed February 12, 2025 as record date for determining entitlement of members for the purpose of payment of interim dividend.

Going forward, with the products launched at Bharat Mobility, they will further strengthen the company’s presence in the premium and scooter segments, said Vivek Anand, Chief Financial Officer.

He added that Union Budget 2025’s emphasis on tax relief for the middle class, along with continued investment in infrastructure and support for the agricultural sector, is expected to boost consumer confidence and drive demand in the auto industry.

The company also announced investment of up to ₹5.15 crore for Solar Power Wheeling project, for the company’s plants at Dharuhera and Gurugram under Group Captive mechanism.

Shares of Hero MotoCorp closed at ₹4,230.55 apiece on the BSE on Thursday, down 1.06 per cent from the previous close.