Hero MotoCorp plans to invest heavily in marketing and create 'power brands'
Hero MotoCorp will be focusing on marketing investment to create 'power brands'. "Now is the time to ramp up brand building, brand awareness and communication around these brands," said CEO Niranjan Gupta.
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Two-wheeler automobile firm, Hero MotoCorp Limited, plans to invest heavily on brand building after posting strong growth in the second quarter of fiscal year 2025. Chief Executive Officer (CEO) Niranjan Gupta disclosed the company's plan for brand building during the Q2 earnings call. According to Gupta, Hero MotoCorp will be focusing on aggressive marketing investment to create 'power brands'.
"Over the last couple of years, we have expanded our portfolio... We have 5 brands in the premium segment, which is very important for us to create traction around that," Gupta said, adding, "Now is the time to actually ramp up brand building, brand awareness and communication around these brands".
Gupta shared details about the product lineup in the works, with the liquid-cooled Xpulse 210 slated for launch within the next six months. Furthermore, the Xtreme 250R is also in development. Regarding ICE scooters, Gupta confirmed that the Xoom 125 and Xoom 160 are in the pipeline.
"Good things must be repeated so that they become repeatable and they become scalable in terms of what happens in the future and therefore, the highest ever top line, bottom line, cash and products firing, again, is a testimony to our focus on all the key parameters of a sustainable growth from a future point of view," he added.
Hero MotoCorp registered a 14.21 percent rise to Rs 1,203.54 crore in profit during the September quarter FY 25 from Rs 1,053.81 crore in Q2 FY 24. The company's net sales stood at Rs 10,463.21 crore, up 10.78 percent in September 2024. The company recorded its highest ever quarterly revenue of Rs 10,463 crore, an 11 percent year-on-year growth while the EBITDA stood at Rs 1,516 crores, a growth of 14 percent.
According to Hero MotoCorp Chief Financial Officer Vivek Anand, the EBITDA improvement was largely driven by mix improvement, lower material cost, and leap savings. A part of it was invested in brand building and new businesses. During the quarter, after taking into account the investment behind the Electric Vehicles business of Rs 175 crore, the overall EBITDA margin improved by 40 basis points to 14.5 percent. During the festive season, the company clocked the highest-ever festival sales of 1.6 million units and 16 percent revenue growth.
