Hero MotoCorp shares in red after IT sends notice worth Rs 605 crore

Hero MotoCorp shares traded over a percent lower to Rs 4,468 in morning trade on April 5 after the income tax department issued a notice to the automobile major worth Rs 605 crore, inclusive of interest, for six assessment years.

“Hero MotoCorp has received notices pertaining to six assessment years from 2014-2020 amounting to a tax demand of Rs 308.65 crore and interest thereon of Rs 296.22 crore on account of certain disallowances,” the company said in a regulatory filing.

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The country’s largest two-wheeler major has also added that the demand  raised is unsustainable in nature, and is unlikely to have material impact on
financials. It will also contest the notices with appellate authorities.

In FY24, the Harley Davidson maker sold 56,21,455 units of motorcycles and scooters. During the year, the company launched a slew of premium motorcycles such as Xtreme 125R, Xtreme 200S, Xtreme 160R 4V,
Harley-Davidson X440, Karizma XMR, and the Mavrick 440. It also upgraded its network with the appointment of 75 Premia outlets and launch of over 400 Hero 2.0 stores.

The management expects a double-digit revenue growth in FY25 led by gain in the 125cc segment, a ramp-up of premium motorcycle portfolio, and EV
market share gain on the back of new launches.

At 9:20 am, the stock was trading at Rs 4,506, down 0.5 percent from the previous close on the NSE. The Hero MotoCorp stock has rallied 15 percent in the last three months.

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