Hero MotoCorp revenue, profit fall due to economic slump

Hero MotoCorp revenue, profit fall due to economic slump

New Delhi [India], Oct 24: Hero MotoCorp, the world’s largest two-wheeler manufacturer, said on Wednesday its standalone revenue from operations during the quarter ending September dropped by 16.7 per cent to Rs 7,571 crore from Rs 9,091 crore in Q2 FY19.

At the same time, profit before tax before exceptional item skidded to Rs 1,098 crore vs Rs 1,448 crore. Profit after tax stood at Rs 875 crore, down 10.4 per cent compared to Rs 976 crore in Q2 FY19. The EBIDTA margin for the quarter stood at 14.5 per cent. The fall in numbers was due to subdued volumes amid weak demand. “Our retail sales during the ongoing festive season have been quite steady so far, thanks to the new motorcycles and scooters that we have launched recently and our slew of innovative schemes for customers,” said Chief Financial Officer Niranjan Gupta.

“We hope to keep the momentum during the upcoming Dhanteras and Diwali festivals,” he said in a statement. Hero MotoCorp launched five new products — three new premium motorcycles and two scooters — in the first five months of the financial year.

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