Hero MotoCorp Q3 Results: Strong Net Profit 12% to ₹1,203 Crore, Revenue Up 5%, Interim Dividend of ₹100 Announced
Business and Industry Overview
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is India’s largest manufacturer of two-wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the ‘World No.1’ two-wheeler company in terms of unit volume sales in a calendar year. It is an Indian multinational motorcycle & scooter manufacturer in India with headquarters in Delhi. It was started in 1984 as a joint venture between Hero Cycles and Honda (a Japanese Motor Company). Since then, Hero MotoCorp Ltd. has continued to maintain this feat. It has 40 years of excellence in manufacturing and R & D. The company has served more than 120 million customers. The company has pledged to become carbon neutral by 2030 and is working towards it by becoming India’s first fully integrated electric scooter. It has partnered with Harley-Davidson to leverage its massive manufacturing and distribution network which will help them to produce more affordable Harley-Davidson bikes locally instead of facing high import duties, which previously hindered sales in the Indian market; this partnership primarily resulted in the development and sale of the X440 model in India. This has also helped in contributing to ‘Make in India’. It is also expanding its presence in markets like Latin America, Africa, and the Middle East by exporting motorcycles and scooters.
The India Two-Wheeler Market Size was valued at USD 302.2 Billion in 2022. The Two-Wheeler market industry is projected to grow from USD 312.77 Billion in 2023 to USD 411.86 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.50% during the forecast period (2024 – 2032). As of recent data, Hero MotoCorp holds around 40% of the Indian two-wheeler market. Some of Hero MotoCorp’s most popular bikes include the Hero Splendor Plus and Hero HF Deluxe. It’s a growing sector in India and has huge potential MotoCorp has very strategically maintained its position in the market.
Latest Stock News
The company has declared an interim dividend of ₹100 per equity share for the financial year 2024-25 & has set February 12, 2025, as the record date to determine shareholders eligible for the interim dividend payment. According to the company’s filing, the dividend payment will be finalized by March 8, 2025.
The company’s board has also approved an investment of up to ₹5.15 crore in a Solar Power Wheeling project to supply renewable energy to its plants in Dharuhera and Gurugram under the Group Captive mechanism.
Vivek Anand, Hero MotoCorp’s Chief Financial Officer (CFO), said, “As we move into the next fiscal year, the products launched at Bharat Mobility will further strengthen our presence in the premium and scooter segments. The 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 growth in the auto industry.”
Business Segments
1. Two-Wheeler Manufacturing:
Hero MotoCorp is one of the world’s largest manufacturers of motorcycles. It produces commuter and premium bikes and scooters, and it offers a range of scooters catering to urban and semi-urban markets. It has a domestic market share of 40 %.
2. Electric Mobility (EV Segment):
It has launched VIDA, HMCL’s in-house electric vehicle (EV) brand, to compete in the growing electric scooter market. It has also invested in Indian EV startup, Ather Energy, with a stake of 32.2 %.
3. Financial & Leasing Services:
It has started a financial service, HeroFinCorp, which provides financing solutions to customers through partnerships with NBFCs and banks to make vehicle ownership easier. It provides services such as two-wheeler loans, loyalty customer personal loans, loans against property & used car finance.
4. Research & Development (R&D):
Hero has its R&D center, the Center of Innovation and Technology (CIT) in Jaipur, focused on developing fuel-efficient and electric mobility solutions with 750 + pretend rights to ensure testing, and validating of 2w, especially premium, EVs and components.
Subsidiaries and Joint Ventures
The Company has six subsidiaries, including step-down subsidiaries and two associate companies.
Subsidiary Companies:
Hero Tech Center Germany (HTCG): HTCG is an R&D hub in Germany that focuses on two-wheeler innovation, testing, and rally development.
HMCL Netherlands B.V. (HNBV): HNBV which is based in Amsterdam, plays a vital role in Hero’s overseas investments.
HMCL Colombia S.A.S. (HMCLC): HMCLC is responsible for Manufacturing and selling two-wheelers in Colombia, this facility produces up to 80,000 units annually. Hero owns 68%, while Woven Holdings LLC holds 32%.
HMCL Niloy Bangladesh Ltd. (HNBL): HNBL is a joint venture in Bangladesh, producing 1,50,000 two-wheelers per year. Hero owns 55%, with the rest held by Nitol Niloy Group.
HMCL Americas Inc. (HMCLA): HMCLA is focused on expanding Hero’s business in the U.S. market.
HMC MM Auto Ltd. (HMCMMA): HMCMMA is a joint venture with Marelli Europe to manufacture fuel injection systems, and Hero has a 66% stake in this.
Associate Companies:
Hero FinCorp (HFCL): It is a financial services company offering vehicle loans, SME financing, and credit solutions with Hero having 49.9% of the shareholding.
Ather Energy (AEL): This is an Indian EV startup focused on designing premium electric two-wheelers. Hero owns around 43.94 % of the stake in this.
Q3 Highlights
- Hero MotoCorp’s standalone net profit rose by 12.1% to ₹1,202.84 crore in Q3 FY25, compared to ₹1,073.38 crore in Q3 FY24.
- The company sold 14.64 lakh motorcycles and scooters in Q3 FY25, a slight increase of 0.27% from 14.60 lakh units in the same quarter last year.
- Profit before tax (PBT) saw a 12.3% jump, reaching ₹1,591.64 crore this quarter.
- Hero MotoCorp announced an interim dividend of ₹100 per share.
- Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 8% YoY to ₹1,476 crore.
- EBITDA margin expanded to 14.5% for the quarter ending 31st December 2024.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 9,788.00 | 10,260.00 | 34,158 | 37,789 |
| Expenses | 8,403 | 8,844 | 30,060 | 32,554 |
| EBITDA | 1658 | 1723 | 4666 | 5923 |
| OPM | 14% | 14% | 12% | 14% |
| Other Income | 288 | 306 | 567 | 689 |
| Net Profit | 1,091 | 1,108 | 2,800 | 3,742 |
| NPM | 11.15 | 10.80 | 8.20 | 9.90 |
| EPS | 54.7 | 55.38 | 140.61 | 187.31 |