Hero MotoCorp struggles on bourses despite great numbers

Hero MotoCorp Ltd., has declared its results on Wednesday. The company came up with stellar numbers by posting record net profits for the quarter ended  September 30, 2016. The net profits have risen by a whopping 27.74 per cent in the quarter when compared to the similar quarter in the previous year. The numbers are impressive looking at the size of the company and its volumes.

The Q2 net profits have risen to Rs 1,004.22 crore from Rs 786 crore last year. Two major factors that triggered the performance is good monsoon this year and the pent-up demand owing to the festive season. The net sales have risen to Rs 8,448.74 crore from Rs 7,346.47 crore backed by unit sales of 1.82 million this quarter compared to 1.57 million a year ago.

Hero MotoCorp is trading at 3370 per share, down by almost 1.5 per cent or Rs 52 per share. Over a one year period the stock has gained by almost 28 per cent, thus outperforming the broader market.