Hero Struggles with Sales in Rural India, Maruti Auto Sales Rises 21%
6:00 PM Mumbai – Maruti Suzuki, the largest automaker in India, said unit auto sales climbed 21% in July. Hero, the maker of two-wheeler, said sales slipped 8% on weaker demand in rural areas. Bajaj sales rose 3%. M&M sales slipped 11%. L&T quarterly profit plunged 37%. HCL net increased 6%.
Stocks in Mumbai reacted to latest auto sales data and earnings reports from banks and financial services.
Rupee strengthened 8 paisa to 64.06 against one U.S. dollar.
The Sensex Index rose 72.50 to close at 28,187.06. The CNX Nifty added 10.20 to 8,543.05.
Gainers & Losers
Bajaj Auto Limited edged down 0.7% to ₹2,501 after the scooter maker said total sales in July rose 3.4% from a year ago month to 3,30,231 units.
Berger Paints India Limited advanced 2.6% to ₹223.50 after the paint maker said net in the first-quarter soared 34.5% to ₹77.30 crore.
Net sales in the quarter increased 5.7% to ₹1,121.20 crore.
Bharat Forge Limited increased 1.6% to ₹1,163.65 after net in the first-quarter surged 34.8% to ₹195.40 crore.
Net revenues in the quarter jumped 14.2% to ₹1,128.50 crore.
HCL Technologies Limited plunged 5.9% to ₹937.40 after the software services provider said net in the fourth-quarter advanced 5.9% to ₹1,783 crore.
Revenues in the quarter gained 5.5% to ₹9,777 crore.
Hero MotoCorp Limited edged up 0.2% to ₹2,679 after the largest motorcycle maker said July two-wheeler sales slipped 7.9% to 4,87,580 units compared to 5,29,862 units in a year ago month.
Hero has been steadily losing market share to Honda and sales in the rural areas have taken a hit on weakening demand after purchasing power declines.
The central and state governments have been cutting down on subsidies for farmers and rural projects and in addition erratic weather has also affected crop production.
Larsen & Toubro Limited fell 0.6% to ₹1,779.40 after net in the first-quarter tumbled 37.3% to ₹606.19 crore.
Total revenues in the quarter increased 6.5% to ₹20,509.53 crore.
Mahindra & Mahindra Ltd dropped 2.2% to ₹1,333.80 after the tractor maker said July total tractor sales slipped 11% to 15,460 units from a year ago month.
Domestic tractor sales in the month declined 13% to 14,273 units while exports climbed 15% to 1,187 units compared to in the same period last year.
Maruti Suzuki India Limited jumped 2.3% to ₹4,429.60 after the largest automaker said total vehicle sales in July climbed 20.1% to 121,712 vehicles from 101,380 vehicles in the same period a year ago.
The company added total domestic sales soared 22.5% to 110,405 vehicles compared to 90,093 vehicles in the same period last year. Export sales edged up 0.2% to 11,307 vehicles.
Punj Lloyd Limited soared 8.2% to ₹29.20 after the company secured a contract worth ₹477 crore from Japan-based Mitsubishi Heavy Industries.
Suzlon Energy Ltd surged 13.5% to ₹24.85 after the wind turbine maker said net in the first-quarter swung to profit of ₹1,047.41 crore compared to a loss of ₹750.74 crore in the same period last year.
Total revenues in the quarter plunged 43.6% to ₹2,643.08 crore.
United Bank of India climbed 4.2% to ₹25.65 after net in the first-quarter declined 20.6% to ₹52.22 crore.
Total revenues in the quarter decreased 3.6% to ₹2,896.75 crore.
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc