Hero MotoCorp was up 1.54% to Rs 2294.05 at 9:47 IST on the BSE after consolidated net profit rose 36% to Rs 1252.22 crore on 8.2% decline in net sales to Rs 8185.66 crore in Q1 June 2019 over Q1 June 2018.
The result was announced after market hours yesterday, 30 July 2019.
Meanwhile, the S&P BSE Sensex was down by 68.68 points or 0.1% to 37,328.83.
On the BSE, 44000 shares were traded in the counter so far compared with average daily volumes of 29000 shares in the past two weeks. The stock had hit a high of Rs 2310.4 so far during the day. The stock had hit a low of Rs 2228.25 so far during the day, which is also 52-week low for the counter. The stock hit a 52-week high of Rs 3400 on 27 August 2018.
On a standalone basis, the company reported a volume of 18,42,920 units in Q1 June 2019.
The company's earnings before interest tax depreciation and amortization (EBITDA) stood at Rs 1158 crore in Q1 June 2019.
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The EBITDA margin fell to 14.4% in Q1 June 2019 from 15.6% Q1 June 2018.
"The overall economic and customer sentiments continued to be soft during the first quarter of this fiscal and their impact is clearly visible in the performance of the Auto sector, The outlook for the rest of the year will be dependent on multiple factors, including the progress of monsoon and festive season offtake, as well as improvement in liquidity. Given the dependence of multiple sectors and millions of jobs on auto industry, it is imperative for the government to take urgent steps to boost consumption. We would, therefore, reiterate our appeal to the government to bring down the GST on two-wheelers to 18% from the current level of 28%, in order to provide the much-needed relief to the sector. A reduction in GST will lower the cost of the two-wheeler and spur demand, with the consequent growth in volumes offsetting any impact on the government revenue," said Niranjan Gupta, chief financial officer, Hero MotoCorp.
The company also became the first two wheeler manufacturer in the country in April 2020, to receive BS-VI certification (Type Approval Certificate). The company received the certificate for Splendor iSmart motorcycle from the International Centre for Automotive Technology (ICAT).
Hero MotoCorp is the world's largest manufacturer of two-wheelers.
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