Hero MotoCorp Ltd's has registered a 9.14 per cent decline in profit before tax (PBT) to Rs 1044.44 crore for the quarter ended December 31, 2019.
The company had posted a PBT of Rs 1149.63 crore in the corresponding period last year.
The total income declined 10.7 per cent to Rs 7259.39 crore during the quarter compared to Rs 8128.16 crore in the same period of previous year.
The company says there are early indicators for the growth of rural economy that are likely to help the industry and it expects to see a turnaround in the second half of FY21.
Hero MotoCorp chief financial officer (CFO) Niranjan Gupta said the two-wheeler industry continues to face challenges amid an overall economic slowdown. Early indicators, such as a positive Rabi crop, augur well for the rural economy, which in turn is likely to help the industry.
"The slew of measures announced by the Finance Minister as part of the Union Budget earlier this week would also go a long way in reviving the economy. However, it will take sometime for the two-wheeler industry to see a sustained recovery. We expect to see positive turnaround in the second half of the new fiscal (FY'21)," said Gupta.
The Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) for the quarter, on a standalone basis, stood at Rs 1039 crore, reflecting 14.8 per cent margin as compared to 14 per cent margin in the same quarter of previous year.
During the quarter, the company launched its first BS-VI motorcycle, the Splendor iSmart and then followed it with its first BS-VI motorcycle in the entry segment- the HF-Deluxe. The company is gearing-up for the transition of its entire product range to the new emission norms well before the regulatory deadline and plans to stop all BS IV production by mid- February.