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Hero MotoCorp gains after reporting record quarterly net profit in Q1

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Capital Market
Last Updated : Aug 09 2016 | 12:01 AM IST

Hero MotoCorp rose 2.30% to Rs 3,513.45 at 14:27 IST on BSE after the company said it reported its highest ever quarterly net profit of Rs 883.10 crore in Q1 June 2016.

The announcement was made during trading hours today, 8 August 2016.

Meanwhile, the BSE Sensex was up 97.30 points, or 0.35%, to 28,175.65.

On BSE, so far 1.13 lakh shares were traded in the counter, compared with average daily volume of 25,020 shares in the past one quarter. The stock hit a high of Rs 3,553.55 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 3,410 so far during the day. The stock hit a 52-week low of Rs 2,259.10 on 7 September 2015. The stock had outperformed the market over the past 30 days till 5 August 2016, rising 10.74% compared with 3.22% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.04% as against Sensex's 11.30% rise.

The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.

Hero MotoCorp's net profit rose 18.13% to Rs 883.10 crore on 7.84% increase in total income to Rs 8131.04 crore in Q1 June 2016 over Q1 June 2015. The company said its gross turnover (gross sales and other operating income) rose 7.74% to Rs 8010.66 crore in Q1 June 2016 over Q1 June 2015. Earnings before interest, depreciation, tax & amortization (EBIDTA) margin was reported at 16.63% in Q1 June 2016, higher than 15.09% in Q1 June 2015.

The company's chairman, managing director and chief executive officer, Pawan Munjal, said that the first quarter of this fiscal carried forward the growth trajectory that the company had set in the previous quarter. The sales growth is reflected in the positive financial results for the quarter, and has given the company the momentum to carry forward as it prepares for the upcoming festive season. With the above-average monsoon so far and the implementation of the 7th Pay Commission recommendations, the firm remains cautiously optimistic about the remaining months of the financial year ending March 2017.

Hero MotoCorp said it sold 17.45 lakh units of two-wheelers in Q1 June 2016, up 6.08% against 16.45 lakh units in Q1 June 2015. This is the highest-ever quarterly sales for Hero MotoCorp.

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Providing additional momentum to the growth trajectory has been the 125cc segment where the company now commands well over 50% market share, thanks to the large volume contributions from Glamour and Super Splendor. In Q1 June 2016, Glamour grew by 32% and Super Splendor grew by 29% over Q1 June 2015.

Hero MotoCorp recently launched the all-new Splendor iSmart 1 10 the first motorcycle to have been completely designed and developed by the in-house R&D team at the Hero Centre of Innovation and Technology (CIT) at Jaipur, and the initial response from customers have been positive.

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

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First Published: Aug 08 2016 | 2:20 PM IST

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