Hero Honda Profits Swell By 91.2%

While net profit increased from Rs 26.34 crore in 1995-96 to Rs 50.36 crore in the year ended March 31, 1997, the company s net sales rose from Rs 631.96 crore to Rs 767.91 crore during the period.

At a board meeting held yesterday, the directors recommended 35 per cent annual dividend for the year, of which 16 per cent has already been paid as interim dividend.

The earnings per share increased from Rs 13.19 per share to Rs 25.22 per share, an increase of 91.2 per cent. The company has cited indigenisation and a favourable exchange rate variation as the reasons for its improved profit performance.

 

Hero Honda has shown a higher depreciation of Rs 13.23 crore last year as against Rs 10.72 crore the previous year.

Meanwhile, its provision for tax dropped from Rs 15.60 crore in 1995-96 to Rs 14.75 crore last year. The company s interest payouts last year stood at Rs 8.68 crore, lower than the previous year s Rs 5.88 crore.

According to a company release, Hero Honda achieved a growth of 16.86 per cent last year, as against the motor-cycle segment growth rate of 21 per cent and the two-wheeler industry growth rate of 11 per cent.