Decline in revenue, profitability in store for two-wheeler majors

Companies are expecting an improvement in sales of vehicles from the quarter beginning April

Country’s top two-wheeler companies, Hero MotoCorp and Bajaj Auto, are set to see a dip in revenue and profitability in the January-March quarter of FY17 as volumes remain under pressure. Firm raw material prices will also weigh upon the margins.

This will be the second consecutive quarter of a marginal dip in profits for these leading two-wheeler makers. Both Hero and Bajaj had reported their best profits in the July-September quarter of FY17. However, in Q3 (October-December) of FY17, Hero’s profit had declined 2.6 per cent to Rs 772 crore while Bajaj reported a decline of five per cent in