Hero Honda net skids 15%

The country’s largest two-wheeler manufacturer, Hero Honda, reported on Friday a 15 per cent decline in profit after tax (PAT) at Rs 505.60 crore for the quarter ended September 30, due to rising input costs and expenses related to product upgradation. The PAT during the corresponding quarter last year had stood at Rs 597.14 crore.

Consolidated revenues grew 12 per cent to Rs 4,551.95 crore from Rs 4,069.60 crore registered during the second quarter last year. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margin for the quarter was 13.36 per cent.

The company reported record sales of 1,285,944 units between July and September. “Hero Honda also saw a significant milestone in selling 2,500,000 units in the first half of the fiscal,” the company said in a statement.

MD and CEO Pawan Munjal said: “We are delighted to report a record quarter with highest-ever numbers, which is extremely encouraging, coming as it does in the face of enhanced marketplace activities and continued constraints in supply of certain components.

A series of launches, marketing innovations and our association with India’s biggest sporting event Commonwealth Games Delhi 2010 have helped us drive the sales numbers sequentially.”

The company launched two new models in the second quarter, the new Splendor Pro and the new Super Splendor.