Hero MotoCorp's July Sales Drop 12%, Shares Fall 3%

2 Aug 2023 , 03:34 PM

Hero MotoCorp’s shares fell 3% to Rs 3,019 in early trade on BSE after reporting a 12% decline in total sales in July. The company sold 3,91,310 units in July 2023, compared to 4,45,580 units in July last year.

Domestic sales dropped to 3,71,204 units from 4,30,684 units in July 2022. However, exports increased to 20,106 units from 14,896 units during the same period, based on data.

The decline in sales was attributed to inclement weather conditions, including heavy rains and floods in certain parts of the country, leading to crop damage and reduced customer footfalls at dealerships.

Hero MotoCorp expects an improvement in market demand with new product launches and attractive finance schemes ahead of the festive season.

On another note, the Enforcement Directorate (ED) conducted raids in Delhi and Gurugram in a money laundering probe against the company’s Executive Chairman, Pawan Munjal, which affected the company’s shares by over 3% in Tuesday’s trade.

The Central Board of Direct Taxes (CBDT) revealed alleged illegal business expenses of over Rs 800 crore without naming the company, adding further uncertainties.

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