 "Hero Motocorp gains on strong Q2 results")
Hero MotoCorp has climbed over 1% to Rs 2,829 on the BSE after India’s biggest two-wheeler manufacturer, exceed Street expectations in the quarter ended September 30.
The Delhi-based company, controlled by the Munjal family, posted 59 per cent growth in net profit during the quarter at Rs 763 crore against Rs 481 crore posted in the same quarter last year.
A near-20 per cent growth in sales, higher other income, discontinuation of royalty payments to Honda and better cost control during the quarter helped the company in improving profits. Festive demand of Navratri and Ganesh Chaturthi overshadowed the subdued sales during the Pitrupaksh days of September.
The Delhi-based company, controlled by the Munjal family, posted 59 per cent growth in net profit during the quarter at Rs 763 crore against Rs 481 crore posted in the same quarter last year.
A near-20 per cent growth in sales, higher other income, discontinuation of royalty payments to Honda and better cost control during the quarter helped the company in improving profits. Festive demand of Navratri and Ganesh Chaturthi overshadowed the subdued sales during the Pitrupaksh days of September.
Net sales of the company grew to Rs 6,863 crore during the quarter, an increase of 20 per cent, compared to Rs 5,696 crore reported in the corresponding quarter a year earlier. EBIDTA (Earnings Before Interest, Depreciation and Amortization) margin stood at 13.52 per cent.
During the quarter, Hero launched operations in Columbia through a wholly-owned subsidiary. It is building a $70-million facility having a total capacity of 1,50,000 units and expected to be operational in mid 2015 in Columbia.
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The stock opened at 2,890, touched a high of Rs 2,890 and a low of 2,810 on the BSE. A total of 11,465 shares exchanged hands on the BSE so far.