Hero Motocorp Q1FY19 net profit at Rs 909 crore; sales up 14%

Two-wheeler maker Hero Motocorp presented its first quarter result for the fiscal year FY19 (Q1FY19) under which the company posted  profit after tax (PAT) for the quarter stood at Rs. 909 Crore vs. Rs 914 Crore in the corresponding Quarter last year. This would be a gradual decline 0.53% on yearly basis. The Q1FY19 net profit was also down by 6.01% compared to Rs 967.4 crore in the preceding quarter. 

Meanwhile, revenue from operations of Rs. 8,810 Crore, as compared to Rs 7,981 Crore (Net of excise duty of Rs 641 Crore) in the corresponding Quarter last year (April-June 2017).

Pawan Munjal, Chairman, Managing Director & CEO, Hero MotoCorp said, “A t Hero MotoCorp, we are constantly striving to build a green and sustainable planet with our state-ofthe-art, world-class manufacturing fa cilities and a range of technologically-superior and eco-friendly motorcy cles and scooters. Fostering the spirit of innovation is now a way of life within the entire organization.”

Munjal added, “Our record sales performances, quarter after quarter, have been a reflection of all these initiatives that we have undertaken at Hero MotoCorp. It is in keeping with our commitment to shape a better future that we are also developing smart and connected two-wheelers.”

Continuing its strong sales growth momentum and further augmenting its market leadership, Hero MotoCorp, the world's largest two-wheeler manufacturer, has registered the highest-ever quarterly sales of 2,106,629 units in Q1FY19. The record sales translate to a robust 13.6% growth over the corresponding period of the previous fiscal, when the Company sold 1,853,647 units.

EBITDA margin stood at 15.6% vs 16.2% in Ql of last year. Profit after tax (PAT) for the quarter stood at Rs. 909 Crore vs. Rs 914 Crore in the corresponding Quarter last year.

EBITDA margin was impacted by commodity costs, although offset to a large extent by pricing and continuing cost management. The impact on the PAT in the Quarter has been on account of the tax benefits coming to an end in Q4 FY'18 at the Company's manufacturing facility at Haridwar.