Shares of Hero MotoCorp surged as much as 4 percent on Monday on the company's positive outlook after posting quarterly numbers. The two-wheeler company's plans in the electric vehicle space also boosted sentiment.

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At 11:20 am, shares of the company were 2.2 percent higher at Rs 2,741.5 on the BSE. The stock has risen after two days of straight fall.

The company reported a consolidated revenue at Rs 8,538.9 crore in the quarter ended September as compared to the previous quarter's Rs 5,502.8 crore and the year ago's Rs 9,473.3 crore.

Consolidated profit stood at Rs 745.7 crore in the reporting quarter against the previous quarter's Rs 256.1 crore and the year ago's Rs 958.5 crore.

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Hero MotoCorp’s positive management commentary and Electric Vehicle (EV) plans also aided gains in the stock.

The company’s EV project is in the advanced stages and the product will be manufactured at its Chittoor plant in Andhra Pradesh, Hero MotoCorp said in its earnings release.

The plant will provide an integrated ecosystem for battery pack manufacturing and testing, vehicle assembly and vehicle end of line testing, the two-wheeler company added.

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Further, the company said in the release that it expects a build‐up in demand in the coming quarters as the economy continues to show recovery and improvement.

Hero MotoCorp expects positive sentiment in the rural, as well as semi‐urban markets, as increased need for personal mobility, positive economic signs, and encouraging farm activities is likely to restart the momentum in the two‐wheeler industry.

“Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through accelerated Leap‐II savings program, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward,” the company added.

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