Leading two wheeler manufacturer Hero Motocorp (HEROMOTOCO) has announced a hike in the price of its bikes with immediate effect. The hike has also come in the wake of a better set of results, beating the market expectations for the previous quarter.
The company said that a hike of Rs. 500 to Rs. 1,500, has been introduced on various segments of two wheelers, as it announced its 4th quarter results. The company reported a net profit of Rs. 5.74 billion for the Q4, as against the expectation of Rs. 4.98 billion, by the analysts.
This good set of numbers has spurred up interest in the stock. The stock has surged nearly 5% in today’s trade. The stock hit a high of 1683 during the early trade.
Despite the prevailing sluggishness in the auto sector, the company had managed to sell 15.27 lakh two-wheelers units in the quarter of March 2013. Hero Motocorp has reported volumes of 60.75 lakh units in the dispatch sales.
The improvement in the margins for this quarter was largely attributed to the fact that the Yen has depreciated against the rupee, which has contributed a significant savings on the raw-material front for the company.