Hero MotoCorp shares extend losses after poor sales results

The country's leading automaker Hero Moto Corp shares on Wednesday (August 2) extended their losses for the second consecutive day after facing a 12 per cent drop total sales in July.

The shares are down 2.03 per cent to Rs 3,040 in early morning trade on Wednesday.

The company's shares were struggling on Tuesday as well, falling 3.14 per cent to Rs 3,103.00, after an Enforcement Directorate raid on the company's executive chairman and wholetime director, Pawan Munjal.  

The company's shares are down 2.50 in the last five trading sessions compared to 1.23 per cent fall of Nifty 50 in the same period.

The shares have gained 4.84 per cent in the last one month as against 1.43 per cent of Nifty 50 in the same duration.

The company released its July sales results after the market closed on Tuesday. 

Hero MotoCorp July Sales Results

Hero MotoCorp on Tuesday reported a 12 per cent fall in its total sales at 3,91,310 units in July.

The company said in a statement that it had sold 4,45,580 units of vehicles in the year-ago period.

"Domestic sales were at 3,71,204 units as compared to 4,30,684 units in July 2022," it added.

The overall sales are much lower than Zee Research estimates.

The analysts had predicted a rise of 11 per cent to 4,95,000 in its total sales.

The overall results are 23 per cent down than the estimates.

Even as the sales decline, the company can take a respite as its exports jumped to 20,106 units from 14,896 units in the corresponding period last year.