Hero MotoCorp Thursday reported 4.5 per cent decline in its standalone profit after tax (PAT) to Rs 769.1 crore for the third quarter ended December 31, on account of higher expenses despite selling more vehicles in the period.
The country's largest two-wheeler maker, which had posted a PAT of Rs 805.43 crore for the same period previous fiscal, incurred higher expenses in the third quarter that impacted its bottomline.
Total income from operations for the quarter under review stood at Rs 8,052.46 crore as against Rs 7,424.23 crore in the same period last fiscal, Hero MotoCorp said in a statement.
During the October-December quarter, the company's expenses stood at Rs 6,914.04 crore, up 9.81 per cent from Rs 6,296.07 crore in the same period previous fiscal.
The company sold 17,98,905 units during the third quarter, up 5.25 per cent as compared with 17,09,107 in the October-December period of 2017-18 fiscal.
Commenting on the results, Hero MotoCorp Chairman Pawan Munjal said there have been temporary setbacks in the third quarter of the current fiscal on account of multiple factors, leading to higher than normal inventory levels at dealerships.
More From This Section
"However, the fourth quarter has historically been positive and we look forward to an improved market situation in the coming months. Hopefully, the upcoming Budget will have enough impetus for the agriculture and social sectors to trigger a positive turnaround in the sentiments," he added.
The company's board, which met Thursday, declared an interim dividend of Rs 55 per equity share of Rs 2 each for the financial year 2018-19.
The two wheeler major said it has appealed against an income tax demand of Rs 2,336.71 crore (including interest) pertaining to re-assessment of Hero Investments Private Limited's (HIPL) income for financial year 2010-11 received during the quarter.
The re-assessment was done despite full disclosure at the time of original assessment, Hero Moto Corp said.
The demand has been raised on the company as HIPL got amalgamated with it from January 1, 2013, it added.
"Based on expert legal opinion, the order is not sustainable, both in law and on facts, both on re-assessment as well as on merits. The company expects a favourable judgement on the same," it said.
Hero MotoCorp shares Thursday ended 0.12 per cent up at Rs 2,612.05 per scrip on the BSE.