Hero Honda Q1 net up 20%

Hero Honda has recorded a 20 per cent growth in net profit at Rs 190 crore during the first quarter (Q1) of 2004-05.

The world's largest two-wheeler manufacturer's sales volume increased 33 per cent during the quarter and turnover grew 28 per cent to Rs 1,745 crore.

In May 2004, the company sold a record 212,177 units, the highest-ever sales of two-wheelers for a company in a single month.

In fact, in the last nine months, Hero Honda has crossed monthly sales of 200,000 units five times. Hero Honda increased its market share in the motorcycle category from 47 per cent to 54 per cent during the quarter.

Operating margin of the company in Q1 went up to 16.57 per cent from 16.33 per cent in the corresponding period last year. According to the company, it is a result of its cost rationalisation and improved working capital management.

"Our domination of the two-wheeler industry has been further intensified in the past nine months. The highly charged growth performance of Hero Honda is a testimony of our customer-centric approach and our incisive understanding of the Indian market. We are confident of maintaining a double-digit growth in the coming months," said Pawan Munjal, managing director, Hero Honda Motors.

Munjal also announced the elevation of Atul Sobti, currently senior vice-president (VP) (marketing & sales) to executive director (ED) (corporate business). K K Agrawal, senior VP (operations) will now be the ED (manufacturing and logistics).

During the end of Q1, the company also renewed its technical collaboration with Honda Motor Company of Japan till 2014.

As part of this agreement, Honda will continue to provide full and latest technological support to Hero Honda for product introductions and other joint operations.