Hero MotoCorp fell 0.23% to Rs 3,413.55 at 9:25 IST on BSE after net profit rose 27.74% to Rs 1004.22 crore on 15.33% increase in total income to Rs 8601.10 crore in Q2 September 2016 over Q2 September 2015.
The result was announced after market hours yesterday, 26 October 2016.Meanwhile, the BSE Sensex was down 84.44 points, or 0.30%, to 27,752.07.
On BSE, so far 17,000 shares were traded in the counter, compared with average daily volume of 30,487 shares in the past one quarter. The stock hit a high of Rs 3,470 and a low of Rs 3,385.35 so far during the day. The stock hit a record high of Rs 3,739.90 on 8 September 2016. The stock hit a 52-week low of Rs 2,375 on 18 January 2016. The stock had outperformed the market over the past 30 days till 26 October 2016, falling 0.84% compared with 1.37% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 7.18% as against Sensex's 1.32% decline.
The large-cap company has equity capital of Rs 39.94 crore. Face value per share is Rs 2.
Hero MotoCorp's earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to its highest-ever 16.20% in Q2 September 2016, as against 14.91% in Q2 September 2015 aided by softer commodities and cost control measures.
The company reported highest ever quarterly sales of 18.23 lakh units in Q2 September 2016, up 15.8% compared with 15.74 lakh units in Q2 September 2015.
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Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero MotoCorp, said the highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of the company's products. At the same time, the company has also delivered on its commitment of further strengthening its profitability by crossing the threshold Rs 1000 crore in PAT for the first time in a quarter. The domestic market has seen a revival in the past two quarters due to an above-average monsoon and positive consumer sentiment. The trend is expected to continue through the year and likely to result in double-digit growth for the industry. In the global markets, however, the industry continues to face headwinds due to volatile business environment driven by continued weakness in crude prices and sharp depreciation of local currencies.
Meanwhile, in a separate announcement, Hero MotoCorp said that its board of directors approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure. The said strategic investment is subject to execution of definitive agreements and completion of certain conditions customary for a transaction of this nature.
As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. Hero MotoCorp intends to enhance its participation in the EV space by pursuing its internal EV program in addition to partnering with Ather.
Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.
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