Hero MotoCorp, a leading two-wheeler manufacturer, has announced a significant 47 percent increase in its net profit, reaching Rs 1,054 crore for the July-September quarter of the current financial year. This substantial growth in net profit is attributed to higher product prices and decreased input costs. In the same period last year, the company had reported a profit of Rs 716 crore.
The revenue from operations also saw a 4 percent rise, reaching Rs 9,445.42 crore for the quarter.
Additionally, Pawan Munjal, the Executive Chairman of Hero MotoCorp, has volunteered to take a 20 percent pay cut. Earlier this year, Munjal had decided to separate the roles of Chairman and CEO, appointing a CEO for the company. The pay cut was approved by the company's Board of Directors and will be effective from January 1, 2024.
In the previous financial year 2022-23, Pawan Munjal received an annual remuneration of Rs 99.55 crore, which will be reduced to approximately Rs 80 crore after the 20 percent reduction. The median remuneration for company employees during FY23 was Rs 12.25 lakh.
The CEO of Hero MotoCorp, Niranjan Gupta, highlighted a healthy demand during the festive season and expressed confidence in the market's robustness. He also noted that global macroeconomic challenges might create some uncertainty but believes that the medium-term outlook for India and the auto industry is encouraging.
Hero MotoCorp reported a 26.5 percent increase in total sales in October this year compared to the same month last year, with total sales reaching 5,74,930 units. Motorcycle sales also saw a 26.2 percent increase in the same period.
On the stock market, Hero MotoCorp's shares closed 0.15 percent higher at Rs 3,095 apiece on Wednesday.
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