Hero Honda net up 19.5%

BS 200 SCORECARD

The country's largest motorcycle manufacturer, Hero Honda today reported 19.5 per cent rise in net profit for the third quarter ended December 2005 to Rs 261.7 crore as against Rs 218.9 crore in the same period last financial year.

The company's total income (net of excise) increased to Rs 2,350.8 crore from Rs 2,043.10 crore, increase of 15 per cent.

"Operating margin for the third quarter stood at 16.3 per cent as against 15.5 per cent in the previous corresponding period. This reflects the company's continued success in rationalising costs, through prudent working capital management, increasing manufacturing efficiency and soaring sales volume," said a release from the company. Sales during the quarter grew 12 per cent to 7.98 lakh units as against 7.12 lakh in the same quarter last year.

"Despite rising input costs right from the beginning of this fiscal year, the company has been able to maintain its operating margins and increase sales volume significantly," said Pawan Kant Munjal, managing director, Hero Honda.

He said the company was hopeful of improving the performance in the coming time, especially after the launch of a scooter range "Pleasure".

Net profit in the nine-month ending December 2005, stood at Rs 704.1 crore, an increase of 16.7 per cent over Rs 603.3 crore in the same period last fiscal. On the other hand, total turnover in the period grew 17.5 per cent to Rs 6568 crore against Rs 5,587 crore.