Hero Honda Q2 net rises 12%

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The country's largest two-wheeler maker Hero Honda Motors today reported a 12 per cent growth in its second quarter net profit at Rs 156.55 crore compared with Rs 139.84 crore registered in the corresponding period a year ago.

Net sales in the quarter ended September 30 grew by 2 per cent to Rs 1,261 crore from Rs 1,235.90 crore registered a year ago.

The company's stock slipped 0.2 per cent on the Bombay Stock Exchange to Rs 333 after the announcement of the results.

In the first half ended September 30, net profit improved 12.67 per cent to Rs 314.37 crore compared with Rs 279 crore registered in the same period last year.

Net sales grew by three per cent to Rs 2,584.72 crore from Rs 2,510.27 crore, a statement from Hero Honda said.

The company, a joint venture between the Munjal family and Honda Motor Company of Japan, sold 4,46,454 motorcycles during the second quarter, a 9.5 per cent rise over the previous year.

In the first six months of the year, volume sales grew by 9.1 per cent to 9,05,233 units. Motorcycle sales, which had a dream run in the past two years had slowed down in the first few months of the year, as a result of the lag effect of last year's floods and drought.

Chairman Brijmohan Lall said the third quarter looked "very promising" due to good monsoons this year, and the buoyant mood prevailing this festival season.

"We are confident of recording even better financial year for the full year period," he said.