Hero MotoCorp records 47% jump in profit; chairman Munjal takes 20% cut in pay
New Delhi, Nov 1 : Hero MotoCorp on Wednesday reported a 47 per cent jump in net profit at Rs 1,054 crore for the July-Sep quarter of the current financial year.
The two-wheeler major had registered a profit of Rs 716 crore in the same period last year.
The growth in net profit came on the back of higher prices of its products and easing input costs.
Revenue from operations went up 4 per cent to Rs 9,445.42 crore in the quarter.
The company has also stated in a regulatory filing that Pawan Munjal, Executive Chairman of Hero MotoCorp, has volunteered to take a 20 per cent pay cut.
"Earlier this year, Pawan Munjal decided to separate the roles of the Chairman & CEO and appoint a CEO for the Company. Following this transition, he has now volunteered to reduce his fixed salary by 20 per cent. The same was approved by the Board of Directors at its meeting today following the recommendations of the Nomination & Remuneration Committee," the auto major said in the exchange filing.
The new remuneration of the Executive Chairman will be come into effect from January 1, 2024.
In 2022-23, Hero Moto paid an annual remuneration of Rs 99.55 crore to Pawan Munjal.
After a 20 per cent cut, the figure comes down to around Rs 80 crore.
The median remuneration of employees of the company during the FY23 was Rs 12.25 lakh.
Meanwhile, Hero MotoCorp CEO Niranjan Gupta said: "A healthy festive demand across most categories and specifically in the auto sector has demonstrated the underlying propensity of the robustness of the market. The consumer confidence is coming back, which augurs well for the growth momentum moving forward."
"Global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important. However, the medium term outlook for India in general and auto industry in particular appears quite encouraging," Gupta added.
The company reported a 26.5 per cent increase in total sales at 5,74,930 units in October this year up from 4,54,582 units in the same month last year.
Motorcycle sales were at 5,29,341 which represents a 26.2 per cent increase over the same month last year, Hero MotoCorp said in a regulatory filing.
The shares of Hero MotoCorp closed 0.15 per cent higher at Rs 3,095 apiece on BSE on Wednesday.