Defying slowdown, Hero Motocorp reports 38% growth in net Profit at Rs. 1257 Cr

NewDelhi : Leading Indian two-wheeler manufacturer Hero MotoCorp has reported rise in Q1 net profit despite fall in Revenue from operations. The Company’s Revenue from Operations for the quarter stood at Rs. 8030 Crore vs Rs. 8810 crores in Q1 FY19 and Profit After Tax (PAT) at Rs. 1257 Cr vs Rs. 909 cr in Q1 FY 19 ( a growth of 38%).

Consolidated Revenue and PAT stood at Rs 8186 cr and 1257 cr respectively for the quarter. EBIDTA margin for the quarter was at 14.4%, improving sequentially vs 13.6% in the Q4 of FY ’19.

“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 on 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% from the current level of 28%, in order to provide the much-needed relief to the sector. 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,” said  Niranjan Gupta, Chief Financial Officer, Hero MotoCorp.