New Delhi (Anish Yande): Shares of Hero MotoCorp rose by 2 per cent on Wednesday's trading session following the announcement of the company's price hike of its vehicles due to increase in commodity prices. Hero MotoCorp shares opened at Rs 2,958 rising to an intraday high of Rs 2,995 per share from its previous close of Rs 2,907 per share. The market cap of Hero MotoCorp rose to Rs 59,984 crore.
Hero Motors hikes motorcycle prices:
Hero Motors would be hiking the prices of motorcycles and scooters by up to Rs 3,000. The price hike would depend on the model and the specific market. The company had stated that it would be hiking the price up to around 2 per cent.
The motorcycle manufacturer would be hiking prices to address the increase in commodity prices. Hero Motors has stated that it has initiated cost savings programmes for reducing the impact on the customer.
Hero Motors has hiked the price of its vehicles as the increase in commodity costs impacted the company's cost of operations. The motorcycle manufacturer was also impacted due to the second wave of Covid-19 and lockdown.
Details of Hero Motocorp's profit and sales:
The automobile company had announced that it had sold 5,05,467 units of motorcycles and scooters in February. The sale of vehicles rose as compared to the sales of 4,98,242 units in February 2020.
Hero Motocorp's exports increased to 21,304 units in February 2021 as compared to 18,046 units in the previous year. The exports of the motorcycle manufacturer increased by 18.1 per cent on a year-on-year basis.
The domestic sales of Hero Motocorp rose to 4,84,433 units in February 2021. Comparatively, the motorcycle manufacturer sold 4,80,196 units in the same month in the previous year.
Hero Motocorp's profit after tax increased to Rs 1,029 crores in the quarter ended December 31, 2020. The profit after tax fell to Rs 880 crores in the December quarter of the previous fiscal.
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