Hero MotoCorp shares skid even after Q1 net zooms over 32%

Hero MotoCorp Limited shares skidded 1 percent to Rs 3,009 by 10am on August 11 even after reporting a 32.1 percent on-year increase in net profit to Rs 824.7 crore for the first quarter that ended June 30, 2023.

The country’s leading two-wheeler (2W) manufacturer’s total revenue stood at Rs 8,767 crore during the period under review, topping CNBC-TV18 estimates. This is against Rs 8,392 crore posted in the corresponding period last fiscal, the company said in an exchange filing on August 10.

Follow our market blog for all the live action

The company’s EBITDA margin stood at 13.8 percent in the reporting quarter as against 11.2 percent last fiscal. The increase in margins can be attributed to softening of commodity costs, accelerated savings programmes and judicious price increases.

As per the company disclosures, the company sold 13.53 motorcycles and scooters in the April-June quarter.

Also read: Hero MotoCorp rides high on investor confidence despite downgrades by analysts

The company said it has received 25,597 bookings for the Harley Davidson X440 since the commencement of bookings on July 4. More than 65 percent of the total bookings are for the top model priced at Rs 2.96 lakh ex-showroom.

Hero also said that the introductory ex-showroom prices have now been revised for the Denim, Vivid and S variants to Rs 2,39,500, Rs 2,59,500 and Rs 2,79,500, respectively.

“It is heartening to see the confidence shown by the customers in Hero MotoCorp’s foray into this segment,” said Niranjan Gupta, CEO of the company on the order traction. The Harley-Davidson X440 is a collaboration between the Harley-Davidson brand and Hero MotoCorp.

The stock price has also been under pressure after the Enforcement Directorate (ED) conducted raids at the residence of Pawan Munjal, Chairman of Hero MotoCorp, after taking cognisance of a Directorate of Revenue Intelligence (DRI) case, CNBC TV-18 reported on August 1.

The Directorate of Revenue Intelligence (DRI) recently apprehended a close associate of Munjal for carrying undeclared foreign currency. Sources told CNBC-TV18 that a Prevention of Money Laundering Act (PMLA) case has been registered against Munjal.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.