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The profit of the company was affected because of the tax benefits that end at Q4FY18 at the Haridwar manufacturing plant. Hero MotoCorp, the country's largest maker of two-wheelers, Wednesday missed badysts' estimates by posting a marginal 0.5% yoy drop in its stand-alone net profit at Rs 909.7 crore during the quarter of April-June.
The turnover of operations during the period was also lower Estimated at Rs 8,809.8 crore, up 10.3% from Rs 7,980.5 crore (net of excise) posted in quarter corresponding last year.
The profit of the company was affected because of the tax benefits ending at Q4FY18 at the Haridwar factory
The margin before interest, taxes, depreciation and amortization (Ebitda) at 15.6% was affected by the costs of raw materials, although offset to a large extent by pricing and on-going cost management. The company's EBITDA at 1.377 crore is up 6.2% yoy, but below estimates.
The company, which manufactures bicycles and scooters like Splendor, Pbadion, Maestro and Duet, shows volume growth of 14% to 2.1 million 1.8 million units in the same quarter the year before. ;last year.
"The Indian economy continues to grow in the face of global headwinds on several fronts.However, the industry has been affected by the volatility of commodity prices driven by global trends," he said. Pawan Munjal, president and CEO of Hero, in a statement.
"Despite these challenges, the industry will maintain momentum During the rest of the year, consumption is expected to remain high due to a normal monsoon and the upcoming holiday season." At Hero MotoCorp, we are ready to ride the momentum with new premium motorcycles and scooters, ready to be launched in the coming months. "Hero MotoCorp takes advantage of the rebound in demand for motorcycles in recent quarters due to rising rural incomes as nearly 50% of the company's volumes come from rural areas and motorcycles that fall into the 95-110cc category.These bikes fall into the category of low prices [19659003] The company's market share at the end of June was 51%, after selling 1.87 million units, or 17% more than the corresponding quarter. from last year.
was slower than that of the industry, where volumes rose 19% to 3.6 million units during
the quarter.
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