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Friday, Oct 21, 2005


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Corporate Results - Two/Three Wheelers

Hero Honda Q2 net up 22 pc on higher volumes, cost cutting

Our Bureau

New Delhi , Oct. 20

HELPED by higher volumes and cost rationalisation measures,Hero Honda on Thursday reported a 22 per cent jump in net profit for the quarter ended September 30 at Rs 237.9 crore against Rs 194.3 crore in the corresponding period last fiscal.

The company, which saw sales jump 21 per cent to 7.42 lakh units, reported a 23 per cent rise in turnover to Rs 2,209 crore against Rs 1,798 crore in Q2 of last fiscal.

"With increasing volumes and continuing cost rationalisation measures, we have been able to demonstrate an impressive performance in the past quarter," the Hero Honda Managing Director, Mr Pawan Munjal, said. The company said operating margins stood at 15.40 per cent, in spite of an increase in input costs and additional taxes. Mr Munjal said the company had consolidated its position in the over 100-cc segment with new launches, consisting mainly of `Super Splendor' and `Glamour'.

"Recently, we have also introduced `Achiever' in the 150-cc segment which we are confident will strengthen our presence in the premium segment. Additionally, now with our entry into the scooter segment with `Pleasure', we are looking at offering our services to a much wider customer-base," he added.

Hero Honda's profit in the first half of this fiscal saw a 15 per cent growth at Rs 442.3 crore against Rs 384.4 crore in the same period of last fiscal. Total turnover for the company in H1 increased 19 per cent to Rs 4,217 crore from Rs 3,543 crore in the same period last year.

The company's stock closed at Rs 698.55 on the Bombay Stock Exchange (BSE) on Thursday, up 1.57 per cent compared to the previous day's closing.

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