Hero Honda Q3 net soars 78% on strong sales

The country's largest two-wheeler maker Hero Honda today reported a huge 78.34 per cent jump in its third quarter net profit at Rs 535.77 crore on the back of a quarterly sales volume of over a million units, and said it may go in for a new facility soon.

It had a net profit of Rs 300.42 crore in the corresponding quarter last fiscal, Hero Honda Motors said in a statement here today.

"It has been a phenomenal year for us, as reflected in both our topline growth and bottomline performance," said the city-based bike major's Chief Executive Officer and Managing Director Pawan Munjal while announcing the results.

The company also reported an 32.82 per cent jump in its total net operating income during the reporting quarter at Rs 3,827.03 crore, against Rs 2,881.27 crore in the year-ago period.

Munjal said 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 further details.

The two-wheeler major also reported a growth 29.56 per cent during the October-December period in its total two-wheeler sales at 11,11,372 units, up from 8,57,806 units during the same period last fiscal.