Hero MotoCorp’s Profit Grows First Time In Three Quarters
Hero MotoCorp snaps two-quarter decline in profit.
Motorcycle maker Hero MotoCorp Ltd. snapped a two-quarter decline as its profit rose in the three months ended June.
Net profit grew 3.5 percent to Rs 914 crore compared to last year, according to its stock exchange filing. That’s in line with the consensus of analyst estimates tracked by Bloomberg.
Revenue increased 7.8 percent over the year-ago period to Rs 7,972 crore. Analysts had expected revenue to grow 9 percent. Operating income, or earnings before interest, tax, depreciation and amortisation, grew 5.3 percent to Rs 1,295 crore year-on-year. Operating profit margin narrowed 30 basis points to 16.3 percent.
Two-wheeler sales grew 6.2 percent over the same quarter last year to 18.53 lakh units. The company faced a slowdown in the previous two quarters due to demonetisation, and then discounts offered to offload Bharat Stage-III compliant vehicles banned by a Supreme Court order.
The growth in domestic market was aided by an improvement in overall market sentiment and robust demand for our range of two-wheelers.Pawan Munjal, Chairman and Managing Director, Hero MotoCorp
Shares of Hero MotoCorp closed 0.4 percent up ahead of its results, compared to the benchmark BSE Sensex that ended unchanged.
