Hero Honda Motors, India’s biggest two-wheeler maker, today reported a 1.68 per cent fall in net profit at Rs 491.7 crore for the quarter ended June 30, much below market expectations, as soaring input prices impacted margins. The profit fall was despite record sales.
The joint venture company, with a 26 per cent stake for Honda Motor Company of Japan, had net profit of Rs 500.1 crore in the same quarter a year earlier. Analysts were expecting the net profit to be in the region of Rs 550-570 crore.
Hero Honda saw growth of 10.3 per cent in two-wheeler sales, comprising 14 motorcycle and one scooter model, at 1,234,039 units during the quarter, as compared to 1,118,987 units sold in the same quarter last year.
Net sales during the reporting period grew by 12 per cent to Rs 4,264 crore, as compared to Rs 3,811 crore posted in the corresponding quarter a year earlier.