Hero MotoCorp declines as transporters' strike impacts despatches

Hero MotoCorp declined 1.24% to Rs 2,974.60 at 14:15 IST on BSE after the company said that the transporters' strike has impacted the despatches from company's plants in Gurgaon and Dharuhera.

The company made the announcement during market hours today, 7 January 2015.

Meanwhile, the BSE Sensex was down 96.13 points, or 0.36%, to 26,891.33.

On BSE, so far 11,284 shares were traded in the counter, compared with an average volume of 34,858 shares in the past one quarter.

The stock hit a high of Rs 3,019.80 and a low of Rs 2,967.05 so far during the day. The stock hit a record high of Rs 3,271.80 on 1 December 2014. The stock hit a 52-week low of Rs 1,907 on 21 February 2014.

The stock of motorcycle manufacturer had underperformed the market over the past one month till 6 January 2015, falling 5.46% compared with 5.17% fall in the Sensex. The scrip had however outperformed the market in past one quarter, rising 4.62% as against Sensex's 1.58% rise.

Hero MotoCorp could despatch only half of its average daily despatches from these two plants on 6 January 2015, it added. Hero MotoCorp said it is trying to make alternative arrangements to minimize further impact. The company said that it expects the authorities and the Automobile Carrier Welfare Association (ACWA) will be able to resolve the issue amicably at the earliest.

Hero MotoCorp also said that the company has raised two-wheeler prices from 1 January 2015 to offset the increased duty impact. The benefit of lower excise duty on automobiles lapsed on 31 December 2014, with the government preferring not to extend the lower excise duties announced last year.

Hero MotoCorp's net profit rose 58.6% to Rs 763.37 crore on 21.7% rise in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013.

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