Financial Daily from THE HINDU group of publications
Sunday, Apr 14, 2002
Corporate Results - Two/Three Wheelers
Net rises 87.52 pc at Rs 462.93 cr -- Hero Honda to pay a total dividend of Rs 17
(From left) The Director and CEO of Hero Honda Motors Ltd, Mr Pawan Kumar Munjal, with the CMD, Mr Brijmohan Munjal , and the Senoir Managing Director of Honda Motor Company, Japan, Mr K. Suzuki, at a press conference in the Capital on Saturday.
NEW DELHI, April 13
HERO Honda Motors Ltd. on Saturday declared a bumper 850 per cent total dividend for 2001-02 to celebrate its becoming the world's largest two-wheeler company in terms of vehicle sales and reporting a robust financial.
The company declared 350 per cent final dividend and 250 per cent `celebration dividend' on account of becoming the world's largest two-wheeler company, over and above the 250 per cent special interim dividend declared in October.
This means that every Hero Honda share, with a face value of Rs 2, would fetch a total dividend of Rs 17 in the year.
An 87.52 per cent year-on-year rise in net profit in 2001-02 and a 42.25 per cent rise in total turnover was the key reason for the bumper dividend, Hero Honda's Chairman, Mr Brijmohan Lall Munjal, said at a press conference here.
In 2001-02, Hero Honda posted a net profit of Rs 462.93 crore, 87.52 per cent higher than the Rs 246.87-crore profit earned a year earlier. Total turnover stood at Rs 4,539.49 crore, 42.25 per cent higher than Rs 3,191.12 crore.
The 26:26 joint venture between Japan's Honda Motor Co. and the Hero Group sold 1.425 million motorcycles in the year, up 38.44 per cent from 1.029 million motorcycles.
In the current year, Hero Honda is targeting 1.8 million motorcycles and account for 35 per cent of all two-wheeler sales in the country, up from about 33 per cent now.
To bolster the already strong vehicle line up, Hero Honda would launch two more motorcycles this year, with the first one expected soon, the newly-appointed Managing Director, Mr Pawankant Munjal, said.
Hero Honda will take two more months to finish a feasibility study on where to set up a third manufacturing plant to supplement current production from Gurgaon and Dharuhera, both in Haryana. "That study will determine where to set up, when and at what capacity,'' Mr Munjal said adding the company would considering launching a scooter in the future.
In order to assuage worries put by analysts on the future of Hero Honda as far technology is concerned, Mr K. Suzuki, Director, said that the Japanese partner will continue to partner Hero Honda as far technology is concerned. Even after the Rs 340-crore dividend outgo for the year, Hero Honda's total reserves will stand at Rs 645.82 crore, a statement said.
Save Rs 1,001
As part of the celebrations on becoming the world's largest two wheeler company, Hero Honda Motors Ltd. has decided to offer Rs 1,001 special waiver on all motorcycles purchased after April 1. Hero Honda did not say when the scheme would end.
For those who bought a vehicle between April 1 and Saturday, the company would offer reimbursement, Mr Atul Sobti, Senior Vice-President (Sales and Marketing) said. "This is a small token of our appreciation for the customers who bought our vehicles,'' Mr Brijmohan Lall Munjal, Chairman said.
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