Hero MotoCorp's Chairman, Pawan Munjal, voluntarily takes 20% salary cut

Hero MotoCorp Ltd's Board has given the green light to Executive Chairman Pawan Munjal's decision to reduce his fixed salary by 20%, which will come into effect on January 1, 2024. The move was endorsed by the Board of Directors based on the recommendations of the Nomination & Remuneration Committee.

In the fiscal year 2023, Pawan Munjal received a remuneration of Rs 99.55 crore, reflecting an 18.02% increase from the previous year. Following the 20% reduction, his remuneration will amount to approximately Rs 80 crore. For context, the median remuneration for the company's employees in fiscal year 2023 was Rs 12.25 lakh.

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Niranjan Kumar Gupta, who was promoted to the role of Chief Executive Officer from May 1, 2023, received a remuneration of Rs 7.89 crore during fiscal year 2023. The approved remuneration for FY24 following the promotion remains undisclosed.

In a separate development, Hero MotoCorp reported a significant 47% surge in net profit, reaching Rs 1,054 crore, for the quarter ending on September 30, 2023, compared to Rs 716 crore in the same period the previous year. This profit growth was fueled by higher prices and reduced commodity costs.

The company's revenue from operations for the quarter increased by 4% year-on-year to reach Rs 9,445.42 crore, up from Rs 9,075 crore in the previous fiscal year. The consolidated revenue and profit after tax for the quarter were Rs 9,533 crore and Rs 1,007 crore, while for the first half of the fiscal year, they stood at Rs 18,384 crore and Rs 1,708 crore.