Hero MotoCorp Limited's shares surged by 4 percent to Rs 5,314 in early trading on June 3, despite the company reporting a decline in sales for the month of May compared to the previous year.
During May, the renowned manufacturer of motorcycles and scooters witnessed a 4 percent decrease in sales, with total units sold amounting to 4,98,123. This figure marked a dip from the year-ago period when the company had sold 5,19,474 units.
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Specifically, domestic sales for the Splendor-maker also experienced a decline, with a drop of nearly 6 percent. In May, the company sold 4,79,450 units domestically, down from just over 5 lakh units sold in the same month last year, as per official data.
However, the company saw a notable increase in exports, which surged by over 67 percent in May. Export figures for the month stood at 18,673 units, compared to 11,165 vehicles sold during the same period in the previous fiscal year."
The management is optimistic about increasing market share in FY25, driven by recent launches in the premium and 125 cc segments. "We anticipate accelerated growth in FY25 and are confident that the premium and 125 cc segments will gain market share," stated Hero MotoCorp's management during a post-results earnings call.
Hero MotoCorp expects strong performance from its new premium segment bikes, including the Maverick 440, Harley Davidson X440, and Karizma. Additionally, the 125 cc segment, featuring models like the Xtreme 125R, Splendor, and Glamour, is receiving an excellent response.
At about 9:20 am, shares were trading at Rs 5,270, up 3 percent from the last close on the NSE. Hero MotoCorp shares have risen 24 percent since the start of the year.
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