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Shares of Hero MotoCorp today fell over 4 per cent after the company reported 14 per cent decline in net profit for the fourth quarter ended March 31, 2015.
The stock dropped by 4.33 per cent to Rs 2,252 on the BSE. On the NSE, it was down 4.38 per cent at Rs 2,251.30.
The stock was the biggest loser among the blue-chips on both Sensex and Nifty.
Hit by a one-time impairment payment due to the bankruptcy of its US-based technology partner Erik Buell Racing (EBR), Hero MotoCorp had yesterday reported a 14.05 per cent decline in net profit at Rs 476.53 crore for the fourth quarter ended March 31, 2015.
“This is after impairment of Rs 155.04 crore ($25 million) of equity investment in Erik Buell Racing, Inc,” the company said.
Hero MotoCorp, which had posted a net profit of Rs 554.43 crore in the same period of the previous fiscal, will set up a wholly-owned arm in the US for research, development and consulting services, distribution and marketing, among others post the setback with EBR.
Net sales of the company for the fourth quarter ended March 31, 2015 stood at Rs 6,793.87 crore, up 4.31 per cent, against Rs 6,512.96 crore in the year-ago period.
In the broader market, the BSE benchmark Sensex was trading at 26,988.82, up 391.17 points.
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