Riding on its highest-ever quarterly volume sales of 16.42 lakh units, supported by two consecutive months of highest-ever sales, Hero MotoCorp, on Thursday, reported its best-ever turnover (net sales and other operating income) of Rs.6,247.28 crore for the first quarter ended June 30, 2012, against Rs.5,681.73 crore, a growth of 9.95 per cent over the corresponding period in the same period last year.
The profit before tax stood at Rs.734.88 crore against Rs.669.57 crore. The profit after tax has improved to Rs. 615.46 crores from Rs.557.89 crore. It has recorded an EBIDTA margin of 15 per cent, according to a company release.
Pawan Munjal, Managing Director and CEO, in a release said: “It has now been more than a year since we began our solo journey, and the success story at Hero MotoCorp only gets stronger with every passing quarter. While the momentum is with us, we are not resting on our laurels. We are stepping on the accelerator to expand our sprawling network within the country even as we enter new geographies globally.”
The two-wheeler industry in the country, although still very untapped, had slowed down over the past couple of months, and the growth had come down to single digit, he said. Going forward, a lot would depend on a good monsoon and the consequent harvest to get the buyers to exercise their decision to purchase, and not postpone it. “Currency volatility is also a point of concern and the Rupee depreciation is likely to impact our margins. However, we remain optimistic of coming back to double digit growth,” he added.
