Hero Motocorp announced its Q1 FY20 earnings, where the company saw a net profit of ₹1257 crores, up by 38%.- However, Hero has seen a decline in sales by 12.2% from the same quarter in FY19.
- The company’s CFO appealed to the government to reduce the GST on two-wheelers from the current 28% to 18%.
The slowing auto market has affected it sales too, which declined by 12.2% to 616,526, just for the month of June, as compared to the 704,562 units sold in the same month last year.
"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,” said Niranjan Gupta, Chief Financial Officer, Hero MotoCorp.
In the Q1, Hero has sold over 1.8 million motorcycles and scooters. In the same quarter of the previous year, Hero had announced its highest ever sales in a single quarter at – 2.1 million.