NEW DELHI :
India’s largest two-wheeler manufacturer, Hero MotoCorp Ltd has reported a year-on-year (YoY) decline of 10% in its consolidated net profit after tax (PAT) for Q2FY2020. The company’s consolidated net PAT stood at ₹884 crore for Q2 against ₹982 crore from the year-ago period.
Hero MotoCorp’s total consolidated income reported a decline of 17% YoY at ₹7,825 crore during Q2 on subdued demand for two-wheelers in the domestic market. The company’s total income stood at ₹7,380 crore during Q2FY2019. Hero said its EBIDTA margin for Q2 stood at 14.5%.
On the standalone front, the two-wheeler manufacturer has reported PAT of ₹875 crore for the quarter ending September 2019 as against ₹976 crore for the year-ago period. Hero’s financial statements indicate that the company’s tax expenses (current tax) in Q2FY20 saved it from posting a sharper YoY decline in its PAT. Its total standalone income for Q2 stood at ₹7,779 crore, down 16.5% YoY.
Meanwhile, for H1 FY20, Hero MotoCorp has reported a YoY growth in its standalone PAT despite recording a substantial drop in its total income, thanks to the exceptional income from reversal of the national calamity contingent duty (NCCD) in Q1FY20.
While the company’s standalone PAT for H1 stood at ₹2,132 crore, up 13% YoY, its total income was ₹16,028 crore, down 12% YoY.
Hero MotoCorp’s H1 wholesale dispatches were recorded at 3,441,517 units, down 17% YoY, reflects the data compiled by the Society of Indian Automobile Manufacturers (Siam). At 92,823 units, the company’s export shipments too were down 12% for the six month period ending September 2019. Notably, Hero has recorded a steeper drop in its scooter wholesales when compared to the motorcycles. It recorded a YoY decline of 36% in its scooter wholesales, which stood at 249,365 units in H1FY20. Motorcycle wholesales saw a drop of 15% YoY at 3,192,152 units during the same period.
"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. We hope to keep the momentum during the upcoming Dhanteras and Diwali festivals," Niranjan Gupta, Chief Financial Officer, Hero MotoCorp said in an official note filed on BSE.
In the same note, Sanjay Bhan, head — sales, aftersales and parts, Hero MotoCorp said that the company is gearing up to launch its first BS VI compliant motorcycle soon after the festive season.
“It will mark the commencement of sequential transition to our BS-VI range over the next few months," he said.