Hero MotoCorp's Q2 FY2020 Profit Down By 10%, At Rs. 875 Crore

Hero MotoCorp has released its financial statement for the second quarter of the financial year 2019-20, which ended with September 30. Between July and September 2019, the company's profit after tax (PAT) reached Rs. 874.80 crore, a decline of 10.39 per cent, as compared to the company's Q2 profit from last financial year, which stood at Rs. 976.28 crore. The total revenue generated from operations between July-Sept was Rs. 7,570.70 crore, registering de-growth of 16.72 per cent, as against Hero MotoCorp's total revenue of Rs. 9090.94 crore generated during the same months in FY2018-19.

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Hero MotoCorp's unaudited consolidated profit for the second quarter of the current financial year stood at Rs. 883.78 crore, a decline of similar 10.42 per cent, as against the company's consolidated profit for the Q2 of last fiscal that stood at Rs. 981.99 crore. The company consolidated revenue at the same time stood at Rs. 7,660.60 crore for this quarter, a decline of 16.4 per cent, as against the Rs. 9,168.24 crore revenue generated during the same period in the previous fiscal year.

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Hero MotoCorp's performance in the H1 (first half) of FY2019-20 was considerably better, with a consolidated PAT of Rs. 2,140.47 crore, a growth of almost 11 per cent as compared to the Rs. 1,906.73 crore profit achieved for April-Sept period during the last fiscal year. The company's consolidated revenue from operations in the H1 of the current fiscal stood at Rs. 15,846.57 crore, a decline of 12.3 per cent, as compared to the company's total income of Rs. 18,081.51 crore, generated for the H1 of FY2018-19. The growth in profit despite dive in income can be attributed to the deferred tax amount of Rs. 58.01 crore, bringing the total tax down to Rs. 788.64 crore compared to Rs. 910.45 crore paid during the same period last fiscal.

In addition to the financial statement, another major announcement to come out of the Hero MotoCorp board meeting was the dissolution/ closure of its wholly-owned subsidiary, HMCL (NA) Inc., in the United States of America.