The world's largest two-wheeler maker Hero MotoCorp on Thursday reported a 10% year-on-year rise in net profit at Rs 616 crore for the first quarter of the current fiscal year against Rs 558 crore in the corresponding quarter of the previous fiscal year.
The profit figure, however, missed forecasts even as it also reported its best-ever turnover at Rs 6,247 crore, an increase of 9.9% from Rs 5,682 crore recorded in the corresponding period of the last fiscal year.
Hero's sales during the quarter stood at 1,642,292 units spurred by two consecutive months of highest-ever sales in April and May when it sold 551,557 and 556,644 units respectively. It, however, gave a pessimistic outlook for sales.
"A lot depends on the monsoon and the subsequent harvest," said Pawan Munjal, managing director and chief executive, Hero MotoCorp. "It is important whether buyers decide to go ahead or defer their purchases. So far monsoon has been patchy, and this might reflect on retail sales in rural and upcountry markets in the coming months."