Hero Honda Q3 net up 8 pc

Hero Honda Q3 net up 8 pc

Author | exchange4media News Service | Saturday, Jan 15,2005 8:54 AM

Hero Honda Q3 net up 8 pc

Hero Honda Motors on Thursday reported an 8 per cent rise in net profit in the third quarter of the fiscal on the back of robust motorcycle sales in the quarter.

Net profit rose to Rs 219 crore during the October-December 2004 period over Rs 203 crore during the year ago period, a company statement said.

Net sales grew 25.6 per cent to Rs 2,043 crore during the quarter ended on December 31, 2004, over Rs 1,626 crore during the same period in the previous year.

Hero Honda, in which Honda Motor Corp of Japan and the Munjals of India each hold 26 per cent stake, sold 24 per cent more motorcycles at 7,12,062 units during the third quarter 2004-05 (5,72,196 units).

The company's margins were, however, under pressure due to higher raw material costs.

"Despite rising input costs right from the beginning of the fiscal year, we have been able to maintain our operating margins and increase sales volume significantly. There is already a strong demand for our products in the market and I am sure the launch of new models in 2005 will further consolidate our market dominance,'' Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said.

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