Hero MotoCorp’s Q1 net profit marginally down

Hero MotoCorp’s Q1 net profit marginally down

Mumbai: Two-wheeler major Hero MotoCorp on Wednesday reported a marginal decline of 0.54 per cent in its net profit for the quarter ended June 30, 2018.

According to the company, the profit after tax (PAT) for the quarter slipped to Rs 909 crore from Rs 914 crore reported for the corresponding period of the previous fiscal.

The two-wheeler major said that its EBITDA (earnings before interest, tax, depreciation and amortization) margin was impacted by commodity costs, although offset to a large extent by pricing and continuing cost management.

As per a company statement “The impact on the PAT in the Quarter has been on account of the tax benefits coming to an end in Q4 FY18 at the company’s manufacturing facility at Haridwar.”

The company’s revenue from operations increased to Rs 8,810 crore from Rs 7,981 crore (net of excise duty of Rs 641 crore) in the corresponding quarter of the previous fiscal.

Sales-wise, Hero MotoCorp registered the highest-ever quarterly sales of 21,06,629 units in the first quarter of the fiscal with a robust 13.6 per cent growth over the corresponding period of the previous fiscal, when the company sold 18,53,647 units.

“The Indian economy continues to grow in the face of global headwinds from several fronts. However, the industry has been adversely impacted by the volatility in commodity prices driven by global trends,” Hero MotoCorp Chairman, Managing Director and CEO Pawan Munjal was quoted as saying in the statement.

“Despite these challenges, the industry will maintain the growth momentum during the rest of the fiscal, with consumption expected to remain high on the back of a normal monsoon and the upcoming festive season. At Hero MotoCorp, we are geared up to ride the positive momentum with new premium motorcycles and scooters, lined up for launch in the coming months.”

IANS