On Thursday, Hero MotoCorp announced that its net profit for the three months ended in June 2023 increased by 32% year over year (YoY) to Rs 825 crore. To Rs 8,767.3 crore, operating revenue increased by 4.5% year over year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), a measure of operating profit, increased 28% year over year in the quarter to Rs 1,206 crore due to lower commodity costs, cost-cutting initiatives, and prudent price hikes. For the quarter, EBITDA margin increased by 250 basis points to 13.8%.
Without accounting for the effects of the electric car market, the underlying EBITDA margin for the ICE business was 14.5%, the firm reported in a release.
If not for a one-time expense of Rs 160 crore made by the automaker for the voluntary retirement program (VRS) offered to some employees, growth in the net profit during the quarter would have been higher.
