Hero MotoCorp’s stock price surged by a thrilling 1.5 percent early morning on November 2, a day filled with excitement after the company unveiled its impressive performance for the quarter ending in September 2023.
At 09:16 AM, Hero Motocorp was racing ahead at Rs 3,141.60, marking an exhilarating gain of Rs 49.40, equivalent to an uplifting 1.60 percent on the BSE.
The company left everyone awe-inspired by reporting a sensational 47 percent surge in its Q2FY4 (July-September) net profit, rocketing to an astounding Rs 1,054 crore from a profit of Rs 716 crore in the same period of the previous year. What a ride !
The company’s profits have left analysts astounded, surpassing their expectations. According to the consensus of five brokerage estimates, the anticipation was a 33 percent year-on-year growth to Rs 955 crore in Q2FY24, a thrilling leap from the Rs 716 crore earned in Q2FY23.
In this heart-pounding quarter, revenue from operations took off by 4.1 percent, soaring to Rs 9,445.42 crore in the review period, compared to the Rs 9,075 crore in the same period of the previous fiscal year.
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Macquarie bestowed a ‘neutral’ rating upon Hero MotoCorp and set a target price of Rs 3,180 per share, giving investors something to dream about. The quarter delivered a jaw-dropping EBITDA performance, while EBITDA per unit reached new heights.
In a move that reflects dedication and sacrifice, the company’s board approved the voluntary proposal of its promoter and chairman, Mr. Pawan Munjal, to reduce the chairman’s fixed salary by a commendable 20 percent for FY23.
The company’s Earnings Before Interest, Depreciation, Taxes, and Amortization (EBIDTA) or operating margin surged to a spectacular Rs 1,328.3 crore in the September 2023 quarter, marking a breathtaking 27.9 percent increase from the Rs 1,038 crore reported in the same period last year. Its operating margin during Q2FY24 took flight, soaring by a remarkable 270 basis points, rising to 14.1 percent from the previous 11.4 percent in Q2FY23. What a remarkable journey of success !
The excitement doesn’t stop there! The company continued its winning streak with a remarkable surge in sales data for the month of October 2023, as total sales volume took off by a stunning 26.5 percent, reaching a triumphant 5,74,930 units, compared to 4,54,582 units in October 2022.
With the recent launch of premium products and the ongoing festive spirit, the company is filled with hope, expecting the demand to remain as bright as ever.
On the domestic front, sales skyrocketed by 26.4 percent, reaching an astonishing 5,59,766 units, while exports added to the celebration, increasing by a remarkable 29 percent, reaching 15,164 units.
The company’s stock reached a climax, touching a 52-week high of Rs 3,275.00, making investors jubilant, while it had touched a low of Rs 2,246.75 on 28 March 2023, a momentary setback. At present, the stock is trading just 4.07 percent below its 52-week high, and a remarkable 39.83 percent above its 52-week low. What a thrilling journey for Hero MotoCorp !
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