Hero MotoCorp’s stock prices continued to drop through Wednesday even after the two-wheeler maker reported a 3.6% YoY rise in standalone net profit at ₹711 crore in the third quarter that ended December 2022.

What Happened? Hero MotoCorp on Tuesday reported a 2.61% year-over-year rise in its total revenue at ₹8,214.18 crore despite weak demand, especially in the rural areas.

The company’s board also approved an interim dividend of ₹65 per share for FY23 adding that the payment of the interim dividend will be completed by March 9.

The world's largest two-wheeler manufacturer’s revenue from operations jumped by 2% in Q3 (year-over-year) to ₹8,031 crore. However, the company sold only 12.40 lakh units during the quarter, which is 4% lower than the same period last year, and more than 13% lesser than the preceding quarter.

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The company's operating profit also saw a drop of nearly 4% year-on-year to ₹924 crore, while the profit margin shrunk to 11.51%.

“We have started recovering our market shares and expect this journey to continue backed by exciting launches lined up over the next few quarters, especially in the premium segment. This, coupled with our renewed focus on savings programme should also help in improving our margin profile going forward,” said Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp.

Gupta added, “We are excited about our EV programme, with Vida being established as a premium and aspirational brand. We are planning to roll this out across multiple cities in FY 24.”

Price Action: Hero MotorCorp Ltd’s share value dropped by close to 2% to ₹2,605.50 on Wednesday afternoon.

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