Hero MotoCorp riding over past blues

Helped by strong festive demand, financials back to form

After many quarters of earnings disruption, Hero MotoCorp’s September quarter (Q2) results suggest it is inching back to normalcy. However, being the first quarter of accounting under goods and services tax (GST), the numbers are not strictly comparable. 

For instance, under GST, revenues are reported net of this tax impact. Under the earlier excise regime, duty paid was shown as a separate line item under ‘expenses’. Therefore, Q2 numbers on a year-on-year (y-o-y) basis might seem weak, though it shouldn’t be compared in that manner. Also, Rs 70.64 crore was received by the Haridwar plant as accrued incentives pertaining to