Hero Honda Q1 net up 16%, turnover up 20%

Hero Honda today reported a 16% increase in net profit at Rs 237.74 crore for the
first quarter ended June 30, 2006 when compared with Rs 204.45 crore in the quarter ended June 30, 2005.

According to a release issued by the company to the BSE today, turnover moved up to Rs 2,416.65 crore from Rs 2,007.63 crore in Q1FY06.

Chairman Brijmohan Lall said: "Hero Honda continued to grow consistently in the first quarter of 2006-07 with the support of our business partners and customers. I would also like to thank our partner, Honda Motor Company, for helping us offer futuristic fuel injection two-wheeler technology for the first time in India.

"We are committed to delivering the highest returns to our shareholders. This quarter has witnessed a number of industry firsts from Hero Honda including the launch of India's first fuel njection motorcycle technology - the 125 cc Hero Honda Glamour Fl. Hero Honda Super Splendor continues to showcase an excellent response from the market and delivered excellent sales growth in this quarter."

Managing director Pawan Munjal said: "Hero Honda continues on its robust growth path. We have announced several initiatives in this quarter to consolidate our market leadership including eight new launches planned for 2006, capacity expansion at the existing plants at Gurgaon and Dharuhera by 4,50,000 units each, which will be completed by August 2006 and will increase our product capacity to 3.9 million units for this year. In this quarter, we also announced the setting up Hero Honda's third plant with a production capacity of 5,00,000 units, which will cater to market demand beyond 2007."