₹68,373. Sales volume surged 9.6%, driven by a 10.3% increase in motorcycles, which made up 93% of total volumes, with the remainder coming from scooters. Consequently, overall revenue growth stood at 14.6% in Q4, totalling ₹9,519 crore.
Additionally, lower raw material costs facilitated an Ebitda (earnings before interest, taxes, depreciation, and amortization) margin expansion of approximately 130 basis points to 14.3%, despite the negative impact of electric vehicle (EV) related spending. Effectively, this meant absolute Ebitda growth at 25.5% was faster than revenue growth. For Hero Moto, the new fiscal year has begun on a strong note, setting the stage for double-digit revenue growth for FY25.
In April, volume growth stood at almost 35%, bolstered by wedding season demand. Factors that are expected to aid growth this year include strong domestic demand from urban and rural areas, as well as upcoming product launches and enhancements to the distribution network. The management is optimistic about the gradual recovery in rural markets, particularly given the normal monsoon forecast for FY25.
Read This: Two-wheeler makers see first-time & rural buyers come back in FY25 With its strong presence in the 100-110cc segment, Hero Moto stands to benefit the most from any rebound in rural market. Furthermore, its existing product mix is less susceptible to the threat of EVs, as only 7% of its sales come from scooters, and its core 100cc motorcycles are less likely to be displaced by EVs. Having said that, Hero is actively expanding its EV portfolio, with new launches expected in the first half of FY25.
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