During the first quarter, Q1FY20, Hero Motocorp had an exceptional gain of 737 crore – this was the provision created for National Calamity Contingent Duty (NCCD) including applicable cess in its Haridwar plant during prior years and this was reversed in the Q1.
This alone helped the company post a 38% (YoY) rise in net profit at Rs.1257 crore despite revenue showing a 9% decline at Rs.8030 crore.
YoY, the monthly sales for the quarter were lower at 18.42 units sold v/s 21.06 units.
EBITDA was down 16% at Rs.1158 crore and margins contracted by 120 bps to 14.4%.
The company stated that the outlook for the rest of the year rests on progress of monsoon, festive season buying takeoff and also improvement in liquidity.
The stock price is having a volatile run on the bourses today. In the opening bell session, it hit a new low at Rs.2228.25 and then with buying at that price, the price bounced back into the green, going on to an intraday high at Rs.2358.95, a rise of 4.5%. It is now among the top gainers on the BSE!