Hero MotoCorp shares close over 2% down on dismal Q4 Net

Shares of Hero MotoCorp today closed over 2 per cent lower, wiping out Rs 1,048.92 crore from its market valuation, after the company reported 14 per cent drop in net profit for the fourth quarter ended March 2015.
The stock slipped 2.23 per cent to settle at Rs 2,301.55 on the BSE. During the day, it dipped 4.33 per cent to Rs 2,252.
The stock was the biggest loser among the blue-chips on the Sensex.
At the NSE, it ended 2.28 per cent lower at Rs 2,300.65.
The company's market valuation fell by Rs 1,048.92 crore to Rs 45,959.08 crore.

"The company's Q4 FY15 results are below estimates," Angel Broking said in a report.

Hit by a one-time impairment payment due to the bankruptcy of its US-based technology partner Erik Buell Racing (EBR), Hero MotoCorp yesterday reported 14.05 per cent decline in net profit at Rs 476.53 crore for the fourth quarter ended March 31, 2015.
"This is after impairment of Rs 155.04 crore (USD 25 million) of equity investment in Erik Buell Racing, Inc," Hero said.
The company, which had posted a net profit of Rs 554.43 crore in the same period of the previous fiscal, will set up a wholly-owned arm in the US for research, development and consulting services, distribution and marketing, among others post the setback with EBR.

Net sales of the company for the fourth quarter ended March 31, 2015 stood at Rs 6,793.87 crore, up 4.31 per cent, as against Rs 6,512.96 crore in the year-ago period.
In the stock market, the BSE benchmark Sensex ended at 27,105.39, up 506.28 points or 1.90 per cent.