Hero Honda has reported higher sales and profit in the quarter ended September 30, 2009.
Total income has risen to Rs. 4,128.15 crore from Rs. 3,255.93 crore in the quarter ended September 30, 2008. The net profit has zoomed to Rs. 597.14 crore from Rs. 306.30 crore.
The company’s strong market position coupled with increasing demand for brands resulted in a 21.7 per cent growth in sales at 11.83 lakh units, according to a release issued to the Bombay Stock Exchange.
After providing interest and other expenses, the profit before depreciation and taxation has risen to Rs. 818.98 crore from Rs. 497.11 crore. The operating profit margin for the quarter has improved to 20.02 percent from 18.12 per cent and the net margin to 14.71 per cent from 13.08 per cent.
Brijmohan Lall, Chairman, has indicated in a release that “sales in the second quarter have also benefited from our focus on introducing market leading products during the festive season. Hero Honda will continue to innovate further and deliver its long-term growth strategy.”
“With over 59 per cent market share in the domestic motorcycle market and with sales of over a million units for the second consecutive quarter, the robust top line growth has largely contributed to the strong bottomline growth.
The company has been consistently reporting sales of more than three lakh units each month this calendar year and for two consecutive months, August and September, sales crossed the landmark figure of more than four lakh two-wheelers.” Mr. Lall said.
The company has recently launched three new models. The new premium bike, the fuel injected ZMR has clearly turned out to be a favourite among bikers. The company has also introduced two more models, a refreshed version of Hunk and Special Edition Splender+.
It has lined up some more launches in the coming months, the release said.