Shares of Hero MotoCorp and Mahindra & Mahindra (M&M) were up by 5% each on the BSE after these companies posted more than 15% year-on-year (Y-o-Y) growth in total sales during the month of October.
Hero MotoCorp was up 5% at Rs 2,934 after the company dispatched 734,668 units of motorcycles and scooters in October 2018 – a growth of 16.4% over the corresponding month of the previous fiscal. The two-wheeler company had sold 631,105 units in the month October 2017.
“Coming immediately after the Company’s highest-ever monthly sales (769,138 in September 2018), the growth provides a positive outlook on the industry, which has witnessed a sub-par festive season sales thus far this year,” Hero MotoCorp said in a statement.
Compared to the previous year, retail off-take across the country during the initial few weeks of the festive season has been moderate, primarily on account of the significant increase in Insurance cost, followed by the associated confusion over the coverage amount and period in the matter of two-wheeler insurance.
The company hopes to see a positive turnaround in the sentiments and retail sales to pick up in the days leading up to Diwali.
M&M was too up 5% to Rs 794 on the BSE in intra-day trade after the company reported 17% Y-o-Y jumped in total tractor sales at 47,376 units in October 2018, as against 40,562 units for the same period last year.
“Demand gained momentum with the onset of the festival season. We have sold 46,312 tractors in the domestic market during October 2018, a growth of 17% over last year. All our plants operated at full capacity, to help us meet the festive demand,” said Rajesh Jejurikar, President - Farm Equipment Sector, M&M.