NEW DELHI: Aided by improving volume, better product mix and stable commodity prices, two of India’s top two-wheeler players – Hero MotoCorp and TVS Motor – had a stellar March quarter (Q4FY24) as they reported double-digit growth in net profit and revenue on Wednesday.
TVS Motor saw its Q4FY24 profit after tax (PAT) rise by 18% year-on-year to Rs 485 crore and its revenue from operations surged 24% to Rs 8,169 crore in Q4FY24. TVS’s total sales during the quarter stood at 10.63 lakh units.
Hero MotoCorp, the world’s largest two-wheeler maker, reported a PAT of Rs 1,016 Crore in the March quarter, up 18% YoY and its revenue from operations for the quarter stood at Rs 9,519 crore, up 15% annually. Hero sold 13.92 lakh units of two-wheelers in Q4FY24 as against 12.70 lakh units in Q4FY23.
The automakers reported a sharp improvement in EBITDA margin. For TVS, the operating EBITDA margin improved by 100bps at 11.3% in Q4, while for Hero, the EBITDA margin for the quarter grew by 120 bps to 14.3%. However, their margins were lower than Bajaj Auto (20.1% in Q4) whose PAT came at Rs 1,936 crore in the March quarter, up 35% YoY.
Niranjan Gupta, CEO of Hero MotoCorp, said moving forward they expect the macro-economic factors to aid the industry’s growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters, added Gupta. Gupta expects market share gains for Hero on the back of our launches in the premium and 125 cc segment done in FY 24.