Chairman of Hero Motocorp Pawan Munjal got approval for his 20% pay cut proposal. He had previously offered to take a pay cut following the company’s split of the CEO and chairman responsibilities.
The company’s quarterly earnings for the September quarter were disclosed by the board of directors on Wednesday. In addition to the Q2 results, it also accepted Pawan Munjal’s proposed wage reduction. His revised salary as Executive Chairman will take effect on January 1, 2024.
Dr. Pawan Munjal decided to designate a CEO for the company and to split the positions of Chairman and CEO earlier this year. In light of this change, he has now offered to take a 20% pay cut from his fixed salary. At its meeting today, the Board of Directors adopted the same decision by the Nomination & Remuneration Committee’s recommendations.
In comparison to the same period last year, when net profit was reported at ₹716 crore, the two-wheeler maker reported a 47% increase to ₹1,054 crore in the second quarter of fiscal year 2023–24. In Q2FY24, their operating revenue was ₹9,445 crore. Compared to the September quarter of FY22–23’s ₹9,075 crore, its operational revenue climbed by 4.1 percent.
In comparison to the Rs1,038 crore recorded in the same period last year, its earnings before interest, depreciation, taxes, and amortization (EBITDA) surged by 27.9% YoY to ₹1,328.3 crore in the July-September quarter. Additionally, during the quarter under review, its margin increased by 270 basis points, from 11.4% in Q2FY23 to 14.1%.
“A powerful festive demand in the majority of categories, particularly the auto sector, has shown the underlying tendency of the market’s robustness. The return of consumer confidence bodes well for the growth momentum going forward, according to Hero MotoCorp CEO Niranjan Gupta.
On the BSE, the company’s shares ended the day Wednesday at ₹3,095 a share, up 0.15%.