At 9.34 am, Hero MotoCorp stock was trading 0.61 per cent at Rs 2,621. The scrip opened at Rs 2,665 and had touched a high and low of Rs 2,665 and Rs 2,610, respectively, in trade so far. (Express Photo)
Hero MotoCorp share price gained over 2 per cent in the early trade on Wednesday after the country’s largest two-wheeler maker on Tuesday (post market hours) reported a marginal 1.13 per cent rise in standalone net profit at Rs 772.06 crore for the second quarter ended September 30, beating expectations. The company had posted a net profit of Rs 763.37 crore during the same period of the previous fiscal.
At 9.34 am, Hero MotoCorp stock was trading 0.61 per cent at Rs 2,621. The scrip opened at Rs 2,665 and had touched a high and low of Rs 2,665 and Rs 2,610, respectively, in trade so far. Sensex was up 69.45 points at 27,376.28.
ICICI Securities in a research note said, “Hero MotoCorp reported its Q2FY16 numbers, which were higher than our estimates. Revenues at Rs 6,837 crore, down 1.1 per cent YoY, 1.7 per cent QoQ, were above our estimate of Rs 6,632 crore. EBITDA margins came in higher at 15.8 per cent against expectations of 14.6 per cent and were higher by 233 basis points YoY, 78 basis poins QoQ. Reported PAT came in at Rs 772 crore, against our expectation of Rs 687 crore.”
Net sales of Hero MotoCorp, however, declined by 1.72 per cent to Rs 6,745.11 crore compared with Rs 6,863.50 crore in the corresponding quarter a year ago. The company sold 15,74,861 two-wheelers during the second quarter, down 6.95 per cent from 16,92,523 units a year ago.
In the past one year, the share price of the company dipped 11.30 per cent to Rs 2605.05 on October 20 while the BSE Sensex gained 3.32 per cent during the same period.
Mihir Jhaveri, director, institutional research, Religare Capital Markets, said, “Hero MotoCorp reported Q2FY16 above estimates on higher margins (15.8 per cent vs. estimated 15.2 per cent) helped by 2.8 per cent QoQ and 5.6 per cent YoY rise in realisations.”
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