Hero MotoCorp, the country’s largest-selling two-wheeler maker, has reported a net profit of Rs 1,257.34 crore in the April-June period of the ongoing fiscal
Hero MotoCorp on Tuesday reported a standalone net profit of 1,257.34 crores in the April-June period of the current financial year. This is a decent 38.29 per cent rise in the net profit from Rs 902.17 crore profit achieved in the corresponding period last year.
However, Hero MotoCorp has said that its revenue has declined by 8.84 per cent to Rs 8,030 crore. This is owing to a 12.51 per cent drop in sales on a year-on-year basis. The bikemaker sold 18,42,920 units in the first quarter of the current financial year.
Hero MotoCorp’s earnings before interest, tax, depreciation and amortization (EBITDA) for the last quarter has been recorded at Rs 1,158 crore, thereby registering a 14.4% EBIDTA margin instead of 15.6% in the first quarter of the last financial year.
The lacklustre performance by Hero MotoCorp can be directly attributed to the slowdown that the country’s two-wheeler and four-wheeler markets have been going through. Almost all manufacturers have been regularly reporting a dip in sales since the last few months, which has ended up having an adverse effect on the revenues of the companies.
Niranjan Gupta, Chief Financial Officer, Hero MotoCorp has said, “The overall economic and customer sentiments continued to be soft during the first quarter of this fiscal and their impact is clearly visible in the performance of the Auto sector. The outlook for the rest of the year will be dependent on multiple factors, including the progress of monsoon and festive season offtake, as well as improvement in liquidity.”
“Given the dependence of multiple sectors and millions of jobs in auto industry, it is imperative for the government to take urgent steps to boost consumption. We would, therefore, reiterate our appeal to the government to bring down the GST on two-wheelers to 18 per cent from the current level of 28 per cent, in order to provide the much-needed relief to the sector.” Mr Gupta added.