On the back of strong sales in the domestic market, India’s largest two-wheeler manufacturer, Hero MotoCorp, on Tuesday reported a 19.39 per cent increase in net profit at Rs 603.62 crore for the quarter ended September 30. It had posted a net profit of Rs 505.60 crore in the corresponding period last year.
Total income for July-September rose to an all-time high of Rs 5,829.32 crore, up 28 per cent from Rs 4,551.95 crore in the year-ago period. Total expenditure rose 29.57 per cent to Rs 5,189.10 crore on account of increased depreciation, employee costs and rising raw material consumption.
Hero sold 1544,315 units, a rise of 20 per cent over the 1285,944 units sold during July-September 2010.
Pawan Munjal, managing director and chief executive officer of Hero MotoCorp, said, “This performance has come despite the rising food inflation and fuel costs. These two areas remain a concern for the industry, as it might adversely impact consumer spending in the coming months. However, we remain confident of carrying forward the buoyancy in our sales.”
The company recorded its highest-ever monthly sales in September at 549,625 units. It is looking at selling over six million units this financial year.
“We expect our retail volumes to peak during the festive month of October, and in anticipation of rising market demand for our products in the coming months, we have been augmenting capacity at our existing plants,” Munjal said.
After the termination of its joint venture with Honda Motor Corporation, Hero MotoCorp introduced a 150cc bike, Impulse, under its own brand name yesterday. The bike, tagged at Rs 66,800, can be used both for commuting and off-road adventure activities. Another 110cc scooter, Maestro, under the Hero brand will hit roads by the end of the financial year.
Hero shares on Tuesday fell 0.41 per cent to close at Rs 1,984.85 on the Bombay Stock Exchange.
