Moneycontrol Bureau
Shares of Hero MotoCorp jumped over 2 percent intraday Wednesday on hopes of getting more foreign investors. The Reserve Bank of India has allowed foreign investors to buy up to 49 percent of the paid up capital in Hero MotoCorp.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 percent of the paid up capital of Hero MotoCorp under the portfolio investment scheme," the central bank said.
The stock has been on buyers’ radar in this month. It had hit record high at Rs 3099 per share intraday on October 22, hoping to rake in strong sales during the festive season.
“The company expects to clock close to 1.5 lakh in retail sales on October 21, 2014, Dhanteras, which will be a 40-50 percent growth over the sales on Dhanteras day last year,” it had said earlier in a statement to the exchanges.
Post Diwali, Sunil Munjal, Joint MD of Hero MotoCorp said in an interview to CNBC-TV18 that the festival period has been very kind to the industry. “A part of sales came from the branding, part came from the new launches and part of it also came from better logistics and planning and how to position the product across the market. Therefore, it was a combination of multiple things that are going on,” he added.
It had reported over 30 percent jump in its sales in September to six lakh units, riding on strong festive season demand. In the past, Hero MotoCorp had crossed the 6-lakh plus monthly milestone in two previous occasions - in October 2013 when it sold 6.25 lakh units and in May 2014 when it sold 6.02 lakh units of two-wheelers.
India's largest two-wheeler maker's second quarter (July-September) net profit shot up 58.5 percent year-on-year to Rs 763 crore led by other income of Rs 193.5 crore (as against Rs 115.5 crore Y-o-Y). Profit in the year-ago period was Rs 481.4 crore. Revenue grew by 20.8 percent to Rs 6,915.3 crore in the quarter ended September 2014 compared to Rs 5,726.2 crore in same quarter last year driven by strong volume growth of 19.4 percent at 16.91 lakh units year-on-year. Volume growth was led by new launches and pick up in rural growth.
At 09:40 hrs Hero Motocorp was quoting at Rs 3,083.35, up Rs 48.55, or 1.60 percent on the BSE.
Posted by Nasrin Sultana
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