Hero MotoCorp gains 4% on May auto sales numbers

Shares of Hero MotoCorp (HMCL) rose 4 per cent to Rs 2,790 on the BSE on Monday in early morning trade after the company reported a 13.5 per cent rise in sales to 652,028 units in May over the previous month. The company had sold 574,366 units in April 2019, it said in a BSE filing.

At 09:59 am, HMCL was the largest gainer among the constituents of S&P BSE Sensex, which up 0.38 per cent at 39,865 points.

However, on year-on-year basis, the sales for the reporting month, has declined by 7.7 per cent from 706,365 units in May 2018.

The country's largest two-wheeler maker said it had surpassed the six lakh units-mark in monthly sales for the first time since February 2019 when it had sold 617,215 units of motorcycles and scooters.

Last month, HMCL launched three new motorcycles -- XPulse 200, XPulse 200T and Xtreme 200S. Apart from these, it had also launched two scooters -- Maestro Edge 125 and Pleasure+ 110.

"The bookings for most of these new products have already commenced at Hero MotoCorp dealerships across the country," the statement said.

The management remains optimistic about long-term two-wheeler demand scenario and expects HMCL to be the key beneficiary of the same. The management has six focus areas for HMCL to accelerate growth – continuously growing in Entry/Deluxe segments, building on premium motorcycle portfolio, increasing its scooter market share, scaling up international business, nurturing emerging segments like EVs and leading sustainably.

Analysts at Prabhudas Lilladher expect near-term growth challenges, however, normal monsoons and pre-buying ahead of BS VI are expected to boost demand from festival season.

 


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel