Hero Honda Q2 net up 22%

BS 200 SCORECARD

Two wheeler major Hero Honda Motors on Thursday reported a 22 per cent jump in net profit to Rs 273.92 crore for the second quarter ending September 30, 2005. Net profit for the second quarter of the previous financial year was Rs 194.36 crore.

Turnover (including other income, net of excise) for the second quarter grew to Rs 2,209 crore, up by 23 per cent over Rs 1,798 crore recorded in the corresponding period in the previous year.

EBIDTA stood at 15.40 per cent in spite of increase in input costs and additional taxes. The profit before tax went up to Rs 350.79 crore, registering an increase of 19 per cent over Rs 295.45 crore reported for the same period last year.

Commenting on the second quarter results, S Ramnath, vice-president - research, of Mumbai-based SSKI Securities said, "While the (sales) volume growth during the quarter was 21 per cent, the revenue growth has been 21 per cent, indicating better realisation (price) driven by change in product mix."

The operating profit margins too has improved quarter on quarter on a sequential basis to 15.4 per cent from 14.8 per cent.

"The operating profit margins has been 20 basis points better than our expectations. Overall revenue growth by the end of the year is expected to be around 15 per cent." he added.

Profit after tax during the first half this year registered a jump of 15 per cent, from Rs 384.43 crore during the corresponding period last year to Rs 442.37 crore this year.

Profit before tax grew by 11 per cent from Rs 583.49 crore in April to September 2004 to Rs. 649.84 crore in the corresponding period this financial year.