Hero Motocorp's scrip down 7 percent

Mumbai, May 3 (IANS) An expected slowdown in the automobile industry coupled with increased competition dampened investor sentiments on Hero MotoCorp's scrip, which fell by 6.99 percent in Thursday's intra-day trade.

The company's scrip at the Bombay Stock Exchange (BSE) fell by 6.99 percent or 157 points around 1.00 p.m. at Rs.2,088 from its previous close of Rs.2,245.

The scrip touched an intra-day high of Rs.2,175 and a low of Rs. 2,078 and was ruling at Rs.Rs.2,088 around 1.00 p.m. making it the top loser in the day's trade.

According to sectoral analyst Yaresh Kothari of Angel Broking, an expected slowdown in the automobile industry and increased competition from players like Honda had played a role in the scrip's downfall.

Other analysts also pointed that a lower-than-expected divided for 2011-12 also damped investor sentiments.

Analysts say that the equity markets were expecting a dividend of around Rs.60, but the company's board of directors had recommended a final dividend at the rate of 2,250 percent or Rs.45 per equity share of Rs.2 each for the 2011-12 fiscal year.

The company had announced its fourth quarter, 2011-12 and full-fiscal 2011-12 results Wednesday.

The world's largest two-wheeler maker had reported a 20.33 percent rise in net profit for the fourth quarter of fiscal 2011-12 at Rs.603.59 crore from Rs.501.61 crore for the quarter that ended March 31, 2011.

For the full fiscal 2011-12, the company's net profit grew 23.35 percent at Rs.2,378.13 crore as compared to Rs.1,927.90 crore for the year ended March 31, 2011.

The company sold over 62,35,205 units in 2011-12 with an operating margin of 10.69 percent. The two-wheeler maker's total income in the last fiscal rose by 21.61 percent at Rs.23,943.60 crore for the year ended March 31, 2012 - from Rs.19,687.55 crore in 2010-11.