In morning trade on April 5, Hero MotoCorp witnessed its shares decline by over 1% to Rs 4,468 following the income tax department’s issuance of a notice amounting to Rs 605 crore for six assessment years.
Hero MotoCorp disclosed in a regulatory filing that it has received notices pertaining to six assessment years from 2014-2020, totaling a tax demand of Rs 308.65 crore along with interest of Rs 296.22 crore due to certain disallowances.
The automobile giant stated that it considers the raised demand as unsustainable and anticipates no significant impact on its financials. Additionally, Hero MotoCorp plans to challenge these notices through appellate authorities.
Despite these challenges, in the fiscal year 2024, the company managed to sell 56,21,455 units of motorcycles and scooters. During this period, Hero MotoCorp introduced several premium motorcycles, including the Xtreme 125R, Xtreme 200S, Xtreme 160R 4V, Harley-Davidson X440, Karizma XMR, and the Mavrick 440. Furthermore, it expanded its network with the establishment of 75 Premia outlets and the launch of over 400 Hero 2.0 stores.
Anticipating a robust performance in the fiscal year 2025, Hero MotoCorp’s management foresees a double-digit revenue growth trajectory. This optimistic outlook is underpinned by strategic initiatives aimed at bolstering gains in the 125cc segment, scaling up the premium motorcycle portfolio, and seizing market share in the electric vehicle (EV) sector through the launch of new products.
Despite the positive projections, at 9:20 am, the company’s stock was trading at Rs 4,506 on the National Stock Exchange (NSE), marking a modest decline of 0.5 percent from the previous close. However, Hero MotoCorp’s stock has demonstrated strong momentum over the past three months, rallying by an impressive 15 percent. This suggests investor confidence in the company’s growth prospects and strategic direction amidst evolving market dynamics.
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