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Hero MotoCorp gains on good sales in April

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Hero MotoCorp rose 1.05% to Rs 2,216.85 at 09:52 IST on BSE after total sales rose 14.4% to 571,054 units in April 2014 over April 2013.

The sales figures were announced on Thursday, 1 May 2014, when the stock market was closed on account of May Day.

Meanwhile, the BSE Sensex was up 98.04 points, or 0.44%, to 22,515.84

On BSE, so far 2,571 shares were traded in the counter, compared with an average volume of 16,089 shares in the past one quarter.

The stock hit a high of Rs 2,222 and a low of Rs 2,205 so far during the day. The stock hit a record high of Rs 2,320 on 7 April 2014. The stock hit a 52-week low of Rs 1,565.95 on 25 June 2013.

 

The stock had underperformed the market over the past one month till 30 April 2014, falling 2.34% compared with the Sensex's 0.35% rise. The scrip had, however, outperformed the market in past one quarter, rising 9.71% as against Sensex's 9.36% rise.

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

Hero MotoCorp's total sales rose 14.4% to 571,054 units in April 2014 over April 2013. This is highest-ever non-festive season monthly sales for the company, surpassing the previous highest of 557,890 units sold in May 2013. The company recorded all-time high monthly sales of 625,420 units in festival month of October 2013, Hero MotoCorp said.

Anil Dua, Senior Vice-President (Marketing and Sales), Hero MotoCorp said, The sales of over 5.71 lakh units in April, the opening month of the fiscal, is the result of a series of initiatives that we have undertaken in the past few months, including new launches, customer-friendly initiatives and brand building activities. The latest addition to the Splendor family - Splendor iSmart with revolutionary i3S technology - has made an immediate impact in the market, and the company is fast ramping up production to meet the growing market demand for this new bike.

Going forward, we are hopeful that the industry will stay on the growth path, although a lot will also depend on the monsoon and overall economic activity, Dua said.

Hero MotoCorp launched its operations in Bangladesh through a joint venture with Nitol Niloy Group in April 2014. Through this joint venture (JV), Hero MotoCorp will set up its first two-wheeler manufacturing plant outside of India. The plant is expected to be operational by the second quarter of year ending 31 March 2016, Hero MotoCorp said.

Hero MotoCorp's net profit rose 7.5% to Rs 524.66 crore on 11.3% growth in net sales to Rs 6845.91 crore in Q3 December 2013 over Q3 December 2012.

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

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First Published: May 02 2014 | 10:06 AM IST

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