Hero MotoCorp gains on selling over 5 lakh units in July

Hero MotoCorp rose 1.92% to Rs 2,728.60 after the company said its month-on-month sales growth saw rapid recovery for the third consecutive month in July 2020 since operations resumed.

Hero MotoCorp sold 514,509 units of motorcycles and scooters in July 2020, registering a sequential growth of 14% over 450,744 sold in June 2020. Sales fell 4% in July 2020 compared with 535,810 units sold in July 2019.

The two-wheeler manufacturer said sales figures reached more than 95% of wholesale dispatch numbers of the corresponding month in the previous year (July 2019). More than 95% of Hero MotoCorp customer touch-points are currently operational, with strict safety measures and protocols in place, the company said.

Hero MotoCorp said robust volumes were driven by strong retail sales due to the positive market demand. While there is cautious optimism on the demand trajectory going forward, sales continue to be impacted by the micro-lockdowns in several parts of the country. For the growth momentum to continue, it would be pertinent for state and local authorities to provide a stable and consistent business environment as the situation evolves.

Hero MotoCorp is the largest two-wheeler manufacturer in the world. Its consolidated net profit slumped 21.6% to Rs 604.63 crore on 20.4% fall in net sales to Rs 6,333.51 crore in Q4 FY20 over Q4 FY19.

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