The Hindu Business Line : Higher sales, lower input costs drive Hero Honda profits up 83%

New Delhi, July 29 Hero Honda on Wednesday announced an 83 per cent rise in its net profit for the first quarter ended June 30, at Rs 500.11 crore, due to record two-wheeler sales, lower input costs and tax benefits.

The company had recorded a net profit of Rs 272.87 crore in the same period last year.

Net sales for the company rose by 34 per cent to Rs 3,822.44 crore for the first quarter, compared with Rs 2,851.04 crore last year.

“We’re delighted to report our best quarter ever, with the highest revenue and earnings in Hero Honda’s history.

“The momentum from a strong previous fiscal has gotten us off to an excellent start in the current financial year.

“Our balance sheet and liquidity position gives us agility and flexibility in today’s weakened global economy and turbulent financial markets,” said Mr Pawan Munjal, Managing Director & CEO, Hero Honda.

According to the company, with a record sales of more than a million units of two-wheelers, this was the first time it crossed the magic million mark within a quarter.

Total sales volumes were up 25 per cent at 1,118,987 units during the quarter, while the industry grew by 12 per cent, it added.

Other key factors that played a role in the strong top line growth include cost rationalisation, softening of commodity prices and the utilisation of substantial tax benefits for its Haridwar plant, said the company.

Hero Honda shares on the BSE fell 2 per cent to Rs 1,639.80 on Wednesday, from the previous close of Rs 1673.85.

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