Hero MotoCorp will make its investors rich. Two-wheeler maker Hero MotoCorp Ltd’s third-quarter net profit increased by 51% to ₹1,073.4 crore, which was ₹711 crore at this time last year.
Hero MotoCorp is the largest two-wheeler manufacturing company in India. Recently, on February 9, Hero MotoCorp Ltd shared its third-quarter net profit in which the company has made a profit of more than 51% as compared to last year. Talking about the figures, the company has made a net profit of ₹ 1,073.4 crore.
After the announcement of this profit, it seemed as if there was a wave of bullishness in the shares of Hero MotoCorp. Shares of Hero MotoCorp Limited rose by 2.05% i.e. ₹ 98.55 to ₹ 4,908.50 in a single day. Recently last year the company earned a net profit of ₹711 crore in the third quarter.
Hero MotoCorp has generated revenue of ₹9,723.7 crore, up 21.1% by December 31, 2023, from ₹8,031 crore last year. The company’s EBITDA i.e. earnings before interest, tax, depreciation, and amortization increased by 47.4% to ₹ 1,362 crore, which was ₹ 924 crore in the third quarter last year.
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So due to this profit, Hero MotoCorp thought of making the investors happy. Hero MotoCorp has announced to give its investors an interim dividend of 3750% i.e. ₹ 75 per equity share and a special dividend of 1250% i.e. ₹ 75 per equity share. So the company will give a total dividend of ₹ 100 per equity share i.e. 5000%.
Hero MotoCorp will determine the eligibility of members for interim & special dividends on February 21, 2024, and the dividend payment process will continue till March 9, 2024. Recently, the company’s focus on Parts Accessories & Merchandise (PAM) business has earned it an annual revenue of Rs 5,000 crore.
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Hero MotoCorp Ltd plans to set up a Global Parts Center (GPC) 2.0 in Tirupati, Andhra Pradesh with a storage capacity of up to 36,700 stock-keeping units (SKUs). In which the company will invest ₹ 600 crore in a period of two years.
Due to the high demand for two-wheelers in the country, the company will also earn good profits in the future. Although you may find the share of Hero MotoCorp Ltd expensive you should invest in this share. Rest, do your own research.