Hero MotoCorp slips after posting muted rise in monthly sales in May

Hero MotoCorp fell 0.65% to Rs 3,067.25 at 09:18 IST on BSE after the company reported 2.32% rise in total two-wheelers sales to 5.83 lakh units in May 2016 over May 2015.

The announcement was made after trading hours yesterday, 1 June 2016.

Meanwhile, the BSE Sensex was up 10.46 points, or 0.04%, to 26,724.39

On BSE, so far 757 shares were traded in the counter, compared with an average volume of 49,899 shares in the past one quarter. The stock hit high of Rs 3,087.30 and low of Rs 3,060.10 so far during the day. The stock hit a 52-week high of Rs 3,170 on 13 April 2016. The stock hit a 52-week low of Rs 2,259.10 on 7 September 2015.

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 market demand was expectedly subdued in May 2016 due to the heavy retail offlake that happened in April on account of the marriage season and regional festivals in different parts of the country during that month. However, a good monsoon after two consecutive years of sub-normal rains could lead to a change in sentiments in the rural markets, which may lead to a positive turn-around in the industry in the second half of this fiscal, the company said in a statement.

In the month of May, Hero MotoCorp forayed into the world of motorcycle rally racing, through a strategic alliance with Speedbrain GmbH, the German off-road racing specialist. The newly formed 'Hero MotoSports Team Rally' made its debut at the Merzouga Rally, a Dakar series race that recently concluded in Morocco.

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

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