Factors such as rising fuel prices
Hero MotoCorp Q4 review: Margin under strain, demand outlook muted, Factors such as rising fuel prices, hardening interest rates, higher compulsory long-term insurance prices, and economic downturn ahead of the general elections have been demand spoilers. Buffeted by multiple macroeconomic and regulatory headwinds in the two-wheeler segment, Hero MotoCorp on April 26 posted a disappointing set of numbers for the March quarter of 2018-19. Year-on-year, net operating revenue dropped 7.9 percent after a significant volume decline of 10.8 percent. Average realisation, however, witnessed an annual growth of 3.2 percent. Factors such as rising fuel prices, hardening interest rates, higher compulsory long-term insurance prices, and economic downturn ahead of the general elections have been demand spoilers. Negative operating leverage, coupled with pricier raw material, pressured earnings before interest, tax, depreciation and amortisation (EBITDA), which fell 22 ...
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