Hero Honda Q4 net up 29%, to pay 1000% dividend

Hero Honda Motors today reported a 29% increase in net profit at Rs 267.19 crore for the fourth quarter ended March 31, 2006 when compared with Rs 207.11 crore in Q4FY05.

According to a release issued by the company to the BSE today, turnover increased to Rs 2,298.91 crore from Rs 1,976.09 crore in Q4FY05.

The company posted a net profit of Rs 971.34 crore for the year ended March 31, 2006 as against Rs 810.47 crore in FY05. Total turnover increased to Rs 8,866.71 crore from Rs 7,558.55 crore in FY05.

The board has recommended a dividend of 1000% i.e. Rs 20 per equity share of Rs 2 each for FY06, the release added.

PTI adds: The company is planning to set up its third plant in Jaipur, which will involve an investment of Rs 320 crore. The plant will have an installed capacity of 5 lakh units that is expandable to 10 lakh units.

Pawan Munjal, managing director of Hero Honda, said the company would also be setting up a fourth plant in India. "We are looking at various options for one more plant," Munjal said.