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The country's largest two-wheeler maker Hero MotoCorp today reported 10.86% decline in its net profit at Rs 548.58 crore for the first quarter ended June 30, 2013.
The company's total income for the quarter has been recorded at Rs 6,159 crore.
The company says that its margins are in line with expectations. The company's Profit After Tax (PAT) came down on higher tax rate due to tax benefit expiry. Its OPM stands at 14.9%.
The company says its PBT margins held despite growth in volume. Its EBIDTA stands at Rs 915 crore.
The company had posted a net profit of Rs 615.46 crore during the same period of previous fiscal.
Net sales of the company declined by 1.30% to Rs 6,126.84 crore for the first quarter, as against Rs 6,207.78 crore during the same period of previous financial year, Hero MotoCorp said in a statement.
Commenting on the results, Hero MotoCorp Managing Director and CEO Pawan Munjal said: "The fact that our PBT has surpassed the previous as well as the corresponding quarter, despite a marginal de-growth in our volumes during the quarter and the overall economic slowdown, is a strong statement of our intent and vision."
He said the company had good sales in April and May but "heavy and early rains in June have slowed down the momentum a bit, but we are optimistic about growth in the second half of the fiscal."
The company's total sales during the quarter stood at 15,59,282 units.
On the outlook, he said: "Our launches that are planned around the festive season should contribute towards accelerating growth. On the new market front, after entering Central America and Africa, we are now geared up for Latin American markets of Peru and Ecuador, which should be in the month of August".
Shares of Hero MotoCorp today closed at Rs 1,757.75 on the BSE, down 1.50% from its previous close.
