Hero MotoCorp sales fell 12.51 per cent to 18,42,920 vehicles on a year-on-year basis
Hero MotoCorp, the country’s largest two-wheeler maker, on Tuesday reported a standalone net profit of Rs 1,257.34 crore for the April-June period. That marked an increase of 38.29 per cent from its net profit of Rs 909.17 crore in the corresponding quarter a year ago. In a regulatory filing after market hours, Hero MotoCorp said its revenue declined 8.84 per cent to Rs 8,030 crore. Hero MotoCorp sales fell 12.51 per cent to 18,42,920 vehicles on a year-on-year basis, according to its filing.
Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at Rs 1,158 crore, reflecting a 14.4 per cent EBITDA margin versus 15.6 per cent in first quarter of financial year 2018-19, according to the company.
“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,” said Niranjan Gupta, chief financial officer, Hero MotoCorp.
“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.
“A reduction in GST will lower the cost of the two-wheeler and spur demand, with the consequent growth in volumes offsetting any impact on the government revenue.”
Hero MotoCorp shares ended 6 per cent lower at Rs 2,259.5 on the BSE ahead of the earnings announcement, sharply underperforming the benchmark Sensex index which declined 0.77 per cent.
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