Mumbai, July 30 (IANS) Two-wheeler major Hero MotoCorp on Tuesday reported a net profit of Rs 1,257.34 crore on a standalone basis for the quarter ended June 30, 2019.
Additionally, the company reported an exceptional item worth Rs 737.48 crore during the first quarter.
Consequently, the profit after tax (PAT) for the quarter in consideration rose to Rs 1,257.34 crore, from Rs 909.17 crore reported for the corresponding period of the previous fiscal.
"The company had deposited and created provision for "National Calamity contingent Duty", including applicable cess, in its Haridwar plant during prior years, while contesting the same on the ground that NCCD is in nature of excise duty and should be covered by area-based exemption," the company said in the balance sheet notes.
"Pursuant to favourable order from Hon'ble Supreme Court, the provision has been reversed as exceptional item in the current quarter and necessary refund applications already filed with the department."
However, the company's revenue from operations for the quarter fell to Rs 8,030.27 crore, from Rs 8,809.82 crore for the quarter ended June 30, 2018.
On consolidated basis, the company's net profit in the first quarter rose to Rs 1,256.69 crore from Rs 924.74 crore reported for the corresponding quarter of last fiscal.
Instead, the company's consolidated revenues from operations decreased to Rs 8,185.97 crore for the quarter ended June 30, 2019, from Rs 8,913.27 crore in the first quarter of 2018-19.
"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," Hero MotoCorp Chief Financial Officer Niranjan Gupta said.
"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. Given the dependence of multiple sectors and millions of jobs on auto industry, it is imperative for the government to take urgent steps to boost consumption."
The Hero MotoCorp stock closed on Tuesday at Rs 2259.35 a share, down Rs 144.40, or by 6.01 per cent, on its previous close on the BSE.
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