In a recent financial update, Hero MotoCorp has reported a mixed bag of results for the fiscal year ending March 31, 2025. While domestic sales have seen a 3.4% year-on-year decline, dropping to 1.28 million units, the company’s revenue from operations has risen by 4%, reaching Rs 9,938 crore. This figure has exceeded market expectations, which were set at Rs 9,757 crore.

Solid Revenue Growth Amidst Sales Decline

Despite the downturn in sales volume, Hero MotoCorp’s operational profitability demonstrated a slight improvement. The company’s EBITDA rose by 4%, totaling Rs 1,416 crore—comfortably surpassing the estimated Rs 1,391 crore.

• Fiscal Year Highlights:
  • Standalone revenue increased by 9% to Rs 40,756 crore.
  • Net profit surged by 16%, reaching Rs 4,610 crore.
  • Total sales for the year hit 5.89 million units.

Attractive Dividend Proposal

In a move to reward shareholders, the board has put forth a proposal for a final dividend of Rs 65 per share, which equates to an impressive 3,250% of the Rs 2 face value. This payout is pending shareholder approval and will be disbursed within 30 days following the upcoming annual general meeting.

Strategic Focus on Growth Segments

Hero MotoCorp attributes its financial success to strong performance in the premium motorcycle, scooter, and electric vehicle segments. Additionally, the company’s strategic expansion in retail and export markets has contributed to this growth. Looking forward, the brand remains optimistic about continued demand in these areas, fueled by innovative product launches and an expanding market presence.

Vikram S Kasbekar, Executive Director & Acting CEO of Hero MotoCorp, stated, “We’re witnessing robust retail interest, particularly in our newly launched premium models and scooters. The ongoing consolidation in our core segment, coupled with growth in the 125cc category and an upcoming EV launch, positions us for sustained progress.”

Positive Economic Indicators

The outlook appears promising, with Vivek Anand, the Chief Financial Officer, emphasizing that favorable macroeconomic factors—such as revised income tax brackets, potential repo rate cuts, a strengthening rural economy, and an optimistic monsoon forecast—are anticipated to boost industry growth.

Hero MotoCorp is committed to enhancing its premium offerings, recently introducing models like the Xtreme 250R, Xpulse 210, and the updated Xtreme 160R 2V. The company is also strengthening its scooter lineup with the Destini 125, Xoom 125, and Xoom 160.

In summary, while Hero MotoCorp faces challenges in domestic sales, its resilient financial performance and strategic initiatives position it well for future growth in an evolving automotive landscape.