Hero MotoCorp Ltd reports 7.55% YoY growth in August 2020 sales

Sprinting ahead with the fourth consecutive month of growth in volume sales, Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, has continued to lead the revival of the automotive sector.

Signaling a positive turn-around for the two-wheeler industry, which is a strong driver of the domestic economy, the Company sold 584,456 units of motorcycles and scooters in the month of August 2020, a growth of 7.55% over the corresponding month of the previous year (August 2019) when it sold 543,406 units.

Sequentially, this translates into a growth of 13% over the month of July 2020, when the Company had sold 514,509 units.

Hero MotoCorp's latest addition to its range of premium motorcycles - the Xtreme 160R - has received very positive feedback from the market and has led to an increase in the company's premium segment market share.

The Company is also witnessing strong retail off-take and is currently operating in pullmarket with rural and semi-urban centers driving demand.

With August marking another step forward in the market's recovery, the Company cautiously anticipates sales to continue their upward trajectory with favorable factors such as the upcoming festive season, increasing consumer confidence and continued government policy support.

Now operating at nearly 100% production capacity with almost all customer touchpoints open, the Company remains committed to the health and safety of everyone in its ecosystem, including its customers.

The company has sold 584,456 units in August 2020, a growth of 7.55% as against 543,406 units in August 2019. Domestic Sales were higher at 568,674 units in August 2020, as compared to 524,003 units in August 2019. Exports were lower in August 2020 at 15,782 units as against 19,403 units in August 2019.

The company has sold 544,658 Motorcycles in August 2020, as compared to 498,547 in August 2019. Scooters sales was lower at 39,798 units in August 2020, as against 44,859 units in August 2019.

Highlights of August'20

- Reiterating to its commitment towards society, Hero MotoCorp donated 10 unique First Responder Vehicles (FRVs) to the government and health authorities in Gurugram, Rewari and Dharuhera in Haryana and Halol in Gujarat. These special and versatile vehicles will help to reach out to patients in rural and remote areas and transfer them easily to closest hospitals. First Responder has been custom-built as an upgrade on Hero MotoCorp's powerful Xtreme 200R motorcycles.

- Hero MotoCorp announced the return of the Twenty20 cricket format in the 'New Normal' with the commencement of Hero Caribbean Premier League 2020. In a first for a cricket premier league, the matches are being played in stadiums without any spectators, with the objective of maintain social distancing.

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2995.25 as compared to the previous close of Rs. 3007.1. The total number of shares traded during the day was 281084 in over 5017 trades.

The stock hit an intraday high of Rs. 3071.6 and intraday low of 2977. The net turnover during the day was Rs. 842444630.

Source : Equity Bulls

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