Hero MotoCorp shares tank over 3% on reporting 29% fall in sales

Hero MotoCorp shares fell over 3.5% to Rs 2,443.8 on the BSE in Wednesday’s intra-day trade after reporting a significant 29% fall in total wholesales as it sold 3,58,254 units in February.

It had dispatched 5,05,467 units in the corresponding period of last year, according to a company statement. While domestic sales declined 31.58% YoY to 3,31,462 units, exports increased by 27.37% YoY to 26,792 in February 2022.

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“With a sharp decline in the number of Covid-19 cases and the economy gradually opening up with several other positive indicators, such as easing of the lockdown restrictions, as well as the measures announced in the FY’23 Union Budget, a swift revival in sales is expected in the coming months,” Hero MotoCorp said in a statement.

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In February 2022, Hero MotoCorp became the first automotive OEM to partner with a prominent Public Sector Undertaking (PSU) to provide charging infrastructure across the country.

In its effort to electrify India, the company has cooperated with Bharat Petroleum Corporation Limited (BPCL) to build charging infrastructure for two-wheeled electric vehicles (EVs) across the country.

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Hero MotoCorp is the world’s largest motorcycle and scooter manufacturer. The company reported a standalone net profit of Rs 686 crore, for the third quarter ended December 2021, down 36.7% from Rs 1,084 crore reported a year ago.

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On a sequential basis, the profit has declined 13.6% from Rs 794 crore. The world’s largest two-wheeler manufacturer has reported a standalone revenue of Rs 7,883 crore, declining 19.4% from Rs 9,776 crore reported in the same period a year ago. Compared to the previous quarter, the revenue has slumped 6.7% from Rs 8,453 crore.