Hero Honda net vrooms 78%

Hero Honda today reported a 78.3 per cent jump in its third quarter net profit at Rs 535.7 crore on the back of quarterly sales volume of over a million units.

The country’s largest two-wheeler maker had a net profit of Rs 300.4 crore in the corresponding quarter of the previous financial year. “It has been a phenomenal year for us, as reflected in both our top line growth and bottom line performance,” Managing Director and Chief Executive Pawan Munjal said.

The city-based bike major also reported a 32.8 per cent jump in its total net operating income during the reporting quarter at Rs 3,827 crore, against Rs 2,881 crore earlier.

It also saw a growth of 29.5 per cent during the October-December period in its total two-wheeler sales at 1,111,372 units, up from 857,806 units during the same period in the previous financial year. Hero Honda’s cumulative sales during the April-December period reached 3,413,594 units.

New facility planned
According to Munjal, the projected economic growth and continued success of various government schemes for rural infrastructure and employment generation is likely to keep the market bullish and this may necessitate the company to go in for a new facility.

“Going forward, we would also have to look at further augmenting the capacity of our existing plants, and also at the possibility of a new plant sometime in the near future,” he said, without providing details.