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Hero MotoCorp gains as manufacturing plant at Neemrana goes on stream

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Capital Market
Last Updated : Oct 20 2014 | 3:30 PM IST

Hero MotoCorp rose 2.08% to Rs 2,936.80 at 15:03 IST on BSE after the company said that its manufacturing facility in Rajasthan has gone on stream.

The announcement was made during market hours today, 20 October 2014.

Meanwhile, the BSE Sensex was up 332.46 points, or 1.27%, to 26,440.99

On BSE, so far 43,395 shares were traded in the counter, compared with an average volume of 41,773 shares in the past one quarter.

The stock hit a high of Rs 2,944 and a low of Rs 2,827.75 so far during the day. The stock hit a record week high of Rs 3,080 on 18 September 2014. The stock hit a 52-week low of Rs 1,907 on 21 February 2014.

The stock had outperformed the market over the past one month till 17 October 2014, rising 1.31% compared with Sensex's 1.96% fall. The scrip had also outperformed the market in past one quarter, rising 17.7% as against Sensex's 2.14% rise.

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

Hero MotoCorp (HMCL) said that its manufacturing facility at Neemrana in Rajasthan has gone on stream. The company said that the current capacity of the plant is 7.50 lakh units per annum which is likely to go up with rising demand. The company has invested Rs 1050 crore in the plant. Hero MotoCorp said that the combined installed production capacity of the company has now risen-up to 7.65 million units per annum -- well in course to achieve the stated objective of 12 million units annual capacity by 2020.

With the launch of its latest facility, HMCL now has four globally benchmarked manufacturing units in India. The new plant will manufacture HMCL's range of motorcycle and scooters. Going forward, the company has plans to develop high-end two wheelers from this facility.

Commenting on the occasion, Pawan Munjal, Vice Chairman, CEO & MD, Hero MotoCorp said "We have lined up total investment of over Rs 5000 crore across the globe, including the manufacturing plans in Columbia and Bangladesh, and the new plants coming up at Gujarat and Andhra Pradesh."

Hero MotoCorp's net profit jumped 58.6% to Rs 763.37 crore on 21.7% growth in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on 16 October 2014.

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

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First Published: Oct 20 2014 | 3:14 PM IST

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