The decline for the fourth straight quarter was led by weak motorcycle volumes in the domestic and overseas markets and higher input costs.
Net profit at the maker of Pulsar and Discover motorcycles crimped to Rs1,112 crore compared to Rs1,123 crore a year ago, while net revenue rose 2.12% to Rs6,461.3 crore compared to Rs6,327.12 crore from a year ago. The revenues for this fiscal year are not comparable to the previous numbers because they are disclosed net of the goods and services tax (GST), the company said in a BSE statement.
The company’s motorcycle volumes during the quarter (including exports) advanced by a mere 2% to 918,721 units over the same period a year ago.
The earnings overshot estimates. The company was expected to post a profit of Rs1,090 crore on net sales of Rs6,289 crore, according to a Bloomberg survey of 19 analysts.
The earnings before interest, tax, depreciation and amortisation (Ebitda) margin, a measure of profitability, stood at 20.8% for the quarter, down from 22.3% for the previous year. The country’s second-biggest motorcycle maker and largest passenger carrier three-wheeler reported a 3.83% rise to 1,071,510 units in total sales year-on-year.Last modified on Tuesday, 17 October 2017