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Hero MotoCorp Q1 net up 10% at Rs 615 cr

Total income increases 10% to Rs 6,352 cr

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 8:29 AM IST

Two-wheeler maker Hero MotoCorp today reported an increase of 10.31% in its net profit at Rs 615.46 crore for the first quarter ended June, riding on the highest-ever quarterly sales volume.

During the period under review, the company's sales stood at 16,42,292 units, Hero MotoCorp said in a statement.

The company had posted a net profit of Rs 557.89 crore in the same period a year-ago.

Revenue from net sales during the first quarter of this fiscal stood at Rs 6,207.78 crore against Rs 5,637.64 crore in the year-ago period, it said.

Commenting on the results, Hero MotoCorp MD and CEO Pawan Munjal said: "It has now been more than a year since we began our solo journey, and the success story at Hero MotoCorp only gets stronger with every passing quarter".

The company is stepping on the accelerator to expand its sprawling network within the country even as it enters new geographies globally, he added.

However, Munjal felt that the patchy monsoon might reflect on retail sales in rural and upcountry markets in the coming months.

"Currency volatility is also a point of concern and the rupee depreciation is likely to impact our margins. However, we remain optimistic of coming back to double digit growth by leveraging our strong brand and the advantage of our wide network," Munjal said.

Recently, the company has also announced a investment of over Rs 2,500 crore in setting up two new plants (in Rajasthan and Gujarat) and expanding capacity at existing plants, Hero MotoCorp said.

Shares of Hero MotoCorp today closed at Rs 2,087.50 on the BSE, down 1.37% from its previous close.

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First Published: Jul 19 2012 | 3:38 PM IST

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