Hero MotoCorp Reports 10.7% Net Profit Decline
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.