Hero Motocorp surges 1.3% after Q3FY17 results

The stock of Hero Motocorp Ltd. which opened for trading at Rs 3,273 on the BSE, has risen by 1.3 per cent on Thursday, compared to the previous close of Rs 3,223.8, after the automobile company reported its results for the quarter ended December 31, 2016 on Wednesday. 

Total sales for this quarter, Q3FY17, came in at Rs 6,364.64 crore. This represents a 18.36 per cent sequential decline and 11.57 per cent YoY decline. This was caused by cash crunch which was led by demonetisation.

Its operating profit (EBIT) for the recently concluded quarter amounted to Rs 954.89 crore and the EBIT margin stood at 15 per cent. Even in the midst of a volatile market environment, the company has been able to maintain a healthy operating margin due to softening of material cost.

In terms of the bottom-line, the company reported a PAT figure of Rs 772 crore which represents a sequential QoQ decline of 23.12 per cent and a YoY decline of 2.67 per cent. Total two-wheeler sales for the nine-month period stood at 50,42,435 units. During this quarter, the company has launched its new Achiver 150 motorcycle, which has been designed and developed at Hero's new R&D facility, the centre of innovation and technology (CIT) in Jaipur.

The stock of the company is currently trading around the mark of Rs 3,263.

Hero MotoCorp Ltd. (formerly known as Hero Honda Motors Ltd.) is the world's largest manufacturer of two-wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year and the automobile company continues to maintain this position till date.