Hero MotoCorp posts better-than-expected 9% jump in net profit

Hero MotoCorpTwo-wheeler giant Hero MotoCorp on Wednesday reported better-than-expected results for the three months ended September 30 this year, thanks to a combination of higher realisation, higher margins and higher other income.

Hero MotoCorp said that it enjoyed a growth of 10 per cent in revenues to Rs 5,726 crore in the July to September quarter of this year, as against revenues of Rs 5,187 crore in corresponding period of last year.

Net profit jumped by 9 per cent to Rs 481.41 crore, while other income climbed by 16 per cent to Rs 115 crore year-on-year in the quarter under review.

Analysts had projected Hero MotoCorp's net profit and revenues for thr the second quarter at Rs 455-463 crore and around Rs 5,675 crore, respectively.

Commenting on the results, Prabhudas Lilladhar analyst Surjit Arora, "The Company performed better than our estimates on the back of strong sales performance from positive rural markets. . Hero is expected to maintain its market share in the domestic market."

The company's high realisation from sales expanded 6 per cent to settle at 14.16 lakh units in July to September quarter of 2013, significantly up from 13.32 lakh units in corresponding quarter of 2012.

The shares of Hero MotoCorp gained marginally by 0.86% on the BSE to end at Rs 2.087.70 a share on close of trade on Wednesday