Hero MotoCorp shares plunged after the company on Wednesday, just before market closing, reported net profit at Rs.6.04bn, up 20% on year but trailing analyst estimates of Rs.6.2bn. Industry sources are confirming that Hero MotoCorp is facing some intensifying competition, especially from former partner Honda, which added downside pressure on the stock. Apart from Honda other competitors like Bajaj Auto, Yamaha Motor and Suzuki Motor Corporation are also breathing down Hero MotoCorp’s neck. Hero MotoCorp has also increased its motorcycles by Rs. 500-1,000 to offset its rising input costs. The company spent 13% higher on raw materials in the Q4. Reports are indicating that Hero’s profit margin declined to 10.1% in the quarter ended Mar 31 from 10.3% in the previous three-month period. Hero MotoCorp has also announced a dividend of Rs. 45 per share. Hero MotoCorp share were trading at Rs. 2,104.25 down 6.3% over the previous close. The shares witnessed a day’s high of Rs. 2,175 and a day’s low of Rs.2,101.20. The total traded quantity of Hero MotoCorp shares stood at 6.53 lakh shares on the BSE.
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