In a shocking turn of events, the Income Tax Department has conducted a raid on the office and residence of Pawan Munjal, chairman of Hero MotoCorp. This two-wheeler manufacturing giant is one of the most successful businesses in India, and this news will likely come as a surprise to many. Hero MotoCorp is present in more than 40 countries and accounts for half of all two-wheelers sold in India.
According to Hindustan Times, the raid is happening at the office and residential premises of the promoters, including the chairman and CEO of the group Pawan Munjal, in Gurugram, Haryana, Delhi, and a few other locations.
Decline In Stock
The stock prices for Hero MotoCorp fell sharply after the news of the raid surfaced. The stock price was trading at ₹2352 around 10:10 AM, which is about 2% down. Other companies in the auto sector, such as Maruti, Bajaj Auto, and TVS Motor have also seen their stock prices drop by up to 1.5%.
Hero MotoCorp’s stock has fallen in the last week. It has been falling for a month now, and it is down 4% so far this year. Additionally, the stock has fallen by 23% since March 2021.
According to the company, the profit of Hero Motocorp has fallen by 36.7% to ₹686 crores in Q3FY21. In the same quarter last year, Hero Motocorp’s profit was ₹1084.47 crores.
The company had ₹7883 crores from operations in the Q3FY21. This is a decrease of 19.4% when compared to the same quarter in the last financial year where they earned ₹9776 crores.