Hero MotoCorp gains after Q4 results

Hero MotoCorp rose 1.13% to Rs 3,360 at 9:55 IST on BSE after 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.

The result was announced after market hours yesterday, 10 May 2017.

Meanwhile, the S&P BSE Sensex was up 69.34 points, or 0.23% to 30,317.51.

On the BSE, 14,000 shares were traded in the counter so far, compared with average daily volumes of 43,259 shares in the past one quarter. The stock had hit a high of Rs 3,379.50 and a low of Rs 3,295.50 so far during the day. The stock hit a record high of Rs 3,739.90 on 8 September 2016. The stock hit a 52-week low of Rs 2,844.40 on 17 November 2016.

The stock had outperformed the market over the past one month till 10 May 2017, rising 3.78% compared with 1.54% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 1.78% as against Sensex's 6.77% rise.

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

Hero MotoCorp said it took a proactive approach towards the launch of BS IV-compliant vehicles, and liquidated large BS III inventory, leading up to 29 March 2017. In the last two days of the month, the company took some tactical steps to assist its dealers and incentivise the customers with an objective to liquidate the remaining BS Ill stocks, resulting in a one-time impact to the margins of the fourth quarter.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin stood at 12.79% in Q4 March 2017, lower than 14.66% in Q4 March 2016.

Hero MotoCorp's retail sales have been outpacing wholesale numbers, as a result of which the company has now been able to maintain healthy dealer inventory. Meanwhile, input costs have been on an upward trend. To partially offset the commodity costs, Hero MotoCorp raised prices ranging from Rs 500 to Rs 2200 on some of the models, with effect from 1 May 2017.

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

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