Hero MotoCorp Falls 2% As Q1 Disappoints

Hero MotoCorp fell over 2 per cent to Rs. 2,525 on Tuesday as the company disappointed the Street on its first quarter number.

The company reported a net profit of Rs. 563 crore on net sales of Rs.6,999 crore as against estimates (NDTV analysts poll) of Rs. 635 crore of net profit on sales of Rs. 7,020 crore.

The company had posted a net profit of Rs. 549 crore during the same period of previous fiscal.

Its ebitda margin declined 141 basis points on year-on-year (y-o-y) and 27 basis points on a quarter-on-quarter (q-o-q) basis to 13.5 per cent due to higher input cost.

Input cost of Hero MotoCorp as a percentage of sales increased 30 basis points y-o-y and 53 basis points q-o-q in the reporting period.

Kotak Securities said the company's EBITDA was below its estimates.

Kotak has cut its price target to Rs. 2,800 from Rs. 2,850, while maintaining a "hold" rating on the stock.

As of 9.40 a.m. shares in Hero MotoCorp traded 1.68 per cent lower at Rs. 2,540.90 as compared to 0.31 per cent fall in Nifty.

(With inputs from Reuters)

NDTV