(Corrects to say profit rose 51%, not 60%, in paragraph 1. The error occurred in an earlier version of this story series)
BENGALURU (Reuters) – India’s Hero MotoCorp reported a bigger-than-expected 51% rise in third-quarter profit on Friday, helped by strong sales of its two-wheelers during the festive season, and declared its first special dividend in 2-1/2 years.
The country’s largest motorcycle maker said standalone profit after tax rose year-on-year to 10.73 billion rupees ($129.3 million) in the three months to Dec.
31. Analysts, on average, expected profit of 10.42 billion rupees, per LSEG data.
Indian consumers tend to splurge during the festival period, regarded as an auspicious time for big-ticket purchases such as cars, two-wheelers and electronic goods, when companies offer promotional discounts.
The festive season, which usually begins in September, was delayed to October-November in 2023, driving Hero’s total domestic sales up more than 17% to about 1.4 million units in the quarter.
The company also benefited from demand for its premium motorcycles, such as the X440 which it makes under a partnership with Harley Davidson and caters to the affluent.
The ‘Splendor’ bike maker’s revenue rose 21% to 97.24 billion rupees, surpassing estimates of 97.02 billion rupees.
Hero reported strong profit growth in the September quarter as well, sparking a rally in its shares.
Hero’s second-quarter results, along with stellar performances from other automakers, also propelled the Nifty auto index to record highs.
Last month, rival two-wheeler makers TVS Motor and Bajaj Auto both beat third-quarter profit views.
Royal Enfield bike-maker Eicher Motors will report next week.
The company’s total dividend of 100 rupees comprises an interim dividend of 75 rupees per share and a special dividend of 25 rupees, its first special dividend since the June 2021 quarter.
($1 = 83.0108 Indian rupees)
(This story has been corrected to say the profit rose 51%, not 60%, in paragraph 1)
(Reporting by Varun Vyas in Bengaluru; Editing by Eileen Soreng)
