Hero MotoCorp (HEROMOTOCO) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 10,144 crore, up 16% year-over-year, and highest ever profit after tax (PAT) of INR 1,123 crore, up 36% year-over-year.

• Sold 15.35 lakh two-wheelers in Q1 FY'25, compared to 13.53 lakh in Q1 FY'24.

• Strong sequential recovery in Entry and 125cc segments, with 125cc market share rising from 13% to 20% quarter-on-quarter.

• Vida EV business scaling up, with over 10,000 units sold and revenue of INR 125 crore in the quarter.

• Rural demand showing robust growth, outpacing urban, supported by favorable government policies and good rainfall.

Financial highlights

• Standalone EBITDA reached INR 1,460 crore, up 21% year-over-year; EBITDA margin at 14.4% (ICE margin at 16.4%).

• Profit before tax (PBT) stood at INR 1,494 crore, up 36% year-over-year.

• Earnings per share (EPS) for the quarter was INR 56.15 (basic), compared to INR 41.27 in Q1 FY'24.

• EV business impacted margins by 198 basis points (INR 181 crore negative contribution).

• Other income for the quarter was INR 231.71 crore.

Outlook and guidance

• Expecting to grow ahead of industry, driven by rural recovery, 125cc ramp-up, and premium brand investments.

• Multiple product launches planned in both ICE and EV segments in the next two quarters.

• Portfolio expansion in EV and premium segments planned within the fiscal year.

• Anticipates step and gradual improvements in EV profitability as volumes and cost structure improve.

• CapEx guidance of INR 1,000–1,200 crore per annum; R&D spend to remain at ~2.2% of revenue.