Hero MotoCorp Q1 results below estimates,margins disappoint

MUMBAI: Two-wheeler major Hero MotoCorp disappointed the Street with its first quarter results for FY15.

The company reported net profit of Rs 562.7 crore for the quarter ended June 2014, up 2.5 per cent, from Rs 549 crore, in the corresponding quarter last fiscal.

Total Sales increased to Rs 7,036.8 crore, up 14.2 per cent, from Rs 6,160 crore in year-ago period.

Q1 EBITDA margins fell to 13.5 per cent vs 14.9 per cent, Year-on-Year (YoY) due to high raw material cost and employee wages.

Analysts are expecting the stock to open on a weak tomorrow.

The company will pay Rs 30 per share as interim dividend to share holders. It has approved raising FII investment limit to 49 per cent from 40 per cent.