Hero MotoCorp accelerates after declaring good monthly sales

Hero MotoCorp rose 1.62% to Rs 3,795 at 09:25 IST on BSE after total two-wheeler sales grew 8.7% to 6.33 lakh units in May 2017 over May 2016.

The announcement was made after market hours yesterday, 1 June 2017.

Meanwhile, the S&P BSE Sensex was up 133.96 points, or 0.43% to 31,271.55

On the BSE, 3,300 shares were traded in the counter so far, compared with average daily volumes of 44,080 shares in the past one quarter. The stock had hit a high of Rs 3,800 and a low of Rs 3,764.05 so far during the day. The stock hit a record high of Rs 3,813.10 on 1 June 2017. The stock hit a 52-week low of Rs 2,844.40 on 17 November 2016.

The large-cap two-wheeler major has equity capital of Rs 39.94 crore. Face value per share is Rs 2.

Hero MotoCorp said that riding on sustained popular demand for its range of motorcycles and scooters, the company reported six-lakh plus unit sales in May 2017. With monsoon already hitting some parts of the country and forecast of normal rains this year, the industry is expecting a boost in demand and consumption in the rural markets, the company said. Having lined up a slew of new launches across various segments, the company is confident of maintaining the growth trajectory in the coming months, it added.

Meanwhile in a separate announcement, Hero MotoCorp yesterday, 1 June 2017, said that the company has commenced commercial production in the manufacturing facility at its subsidiary HMCL Niloy Bangladesh. This plant, located at Jessore in Bangladesh, has an installed capacity of 1.50 lakh vehicles per annum. The announcement was made after market hours yesterday, 1 June 2017.

This is Hero MotoCorp second manufacturing facility at an overseas location. The company, which has rapidly expanded to 35 countries across Asia, Africa and South and Central America, has its first overseas manufacturing plant at Vila Rica near Cali in Colombia, which became operational in 2015, it added.

Hero MotoCorp's net profit fell 13.9% to Rs 717.75 crore on 7.9% decline in net sales to Rs 6915.20 crore in Q4 March 2017 over Q4 March 2016.

Hero MotoCorp is the world's largest manufacturer of two-wheelers.

Powered by Capital Market - Live News