Hero MotoCorp Reports 10.7% Net Profit Decline

July 24
4:44 PM 2013

Indian motorcycle company Hero MotoCorp reported a 10.7% decrease in its profit for the first quarter. This is the fourth incidence in a series of quarterly declines as low sales volumes continue to offset margin benefits from rate increases.

Hero's sales decreased as much as 4% during the quarter, affected by fuel price upsurge and sluggish economic growth, according to data compiled by the Society of Indian Automobile Manufacturers.

India's largest two-wheeler maker posted a INR 5.49 billion net profit for the three months up to June, compared with the company's INR 6.15 billion profit the previous year. 

The company's net sales showed a decline from INR 62.47 billion to INR 61.27 billion.

Hero and local competitor Bajaj Auto Ltd are also affected by increasing sales of rival Honda Motor Co which has found a profitable niche in a market where two-wheelers are the preferred mode of transportation. 

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