Hero Honda net rises 50% in festive mood

Riding high demand, the country’s largest two-wheeler manufacturer—it has over 55% market share—Hero Honda Motor Ltd (HHML), registered 49.9% growth in its net profit at Rs 306.30 crore for the second quarter ended September 30, compared with Rs 204.33 crore during the same period last year.

The company’s turnover for the July-September quarter went up by 35.6% at Rs 3,202 crore, against Rs 2,361 crore in the corresponding quarter last year. Its Ebidta margin stood at 13.5% vis-à-vis 12.2% in the first quarter. “The company’s topline as well as bottomline have seen a healthy growth mainly on account of growth in volume and the cost discipline within the company during this fiscal, besides our focus on customer's need and expansion of our dealer network,”said Pawan Munjal,managing director& CEO,HHML.

Hero Honda’s cumulative sales for the second quarter went up by 28.5% at 9,72,095 units compared with 7,56,494 units in the July-September quarter last year. While the company has set a target of selling 6 lakh units in the current festive season, compared with 5.3 lakh units sold during the corresponding period last year, it feels demand will slow down after the season unless liquidity flows into the system and at lower interest rates.

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