Hero MotoCorp advances after reporting modest growth in July sales

Hero MotoCorp rose 1.53% to Rs 3,268.45 at 11:35 IST on BSE after the company announced that its total sales rose 9.13% to 5.32 lakh units in July 2016 over July 2015.

The company announced the monthly sales volume data after market hours yesterday, 1 August 2016.

Meanwhile, the S&P BSE Sensex was up 116.42 points, or 0.42%, to 28,119.54

On BSE, so far 16,975 shares were traded in the counter, compared with average daily volume of 24,269 shares in the past one quarter. The stock hit a high of Rs 3,279 and a low of Rs 3,201.95 so far during the day. The stock hit a record high of Rs 3,395 yesterday, 1 August 2016, ahead of the announcement of the monthly sales volume data for July 2016. The stock hit a 52-week low of Rs 2,259.10 on 7 September 2015. The stock had underperformed the market over the past one month till 1 August 2016, rising 1.34% compared with 3.16% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 10.96% as against Sensex's 9.36% rise.

The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.

Hero MotoCorp said that the company continues to dominate the 100 cc and 125 cc motorcycles segments. In the scooter segment, the Maestro Edge and Duet models maintained their growth trajectory in July 2016, Hero MotoCorp said.

In July 2016, Hero MotoCorp commenced retail sales of Splendor iSmart 110 - the first motorcycle to have been completely designed and developed by its in-house Research and development (R&D) at the state-of-the-art Hero Centre of Innovation and Technology in Jaipur. The company said that the initial customer response to the new bike has been positive.

With the above average monsoon and implementation of the seventh pay commission recommendations, the company remains cautiously optimistic about a positive turnaround in the two-wheeler industry in the second half of the year, Hero MotoCorp said in a statement.

The company's net profit rose 70.9% to Rs 814.16 crore on 10.6% increase in total income to Rs 7614.61 crore in Q4 March 2016 over Q4 March 2015. Hero MotoCorp is scheduled to announce its Q1 June 2016 result on 8 August 2016.

Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.

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