Wednesday, February 2, 2011

Hero Honda's third quarter net profit down 20 percent

New Delhi, Feb 2 (IANS) Two-wheeler major Hero Honda Motors Ltd Wednesday reported a 20 percent decrease in its net profit for the third quarter of the current fiscal. Its total income, however, increased by 34.13 percent during the same period.
'The company has posted a net profit of Rs.4,290 million for the quarter ended Dec 31, 2010, as compared to Rs.5,357.70 million for the quarter ended Dec 31, 2009,' the company said in a regulatory filing.
According to the company, its margins were affected due to rising input costs and constraints in components supply.
'Our margins have been under pressure on account of that (multitude of issues with constraints in supply of components and rising input costs),' the company's managing director and chief executive Pawan Munjal said.
Meanwhile, the company has said it expects the demand to remain strong for the two-wheeler segment, while the margins would still be under constraints in the short-term.
'While we expect the market demand for two-wheelers to remain bullish and we are confident of carrying on our growth trajectory, we do foresee margins to remain under pressure in the short term,' Munjal said.
The company also reported its total income, which increased by 34.13 percent to Rs.5,223.69 crore in the third quarter from Rs.3,894.38 crore for the quarter ended Dec 31, 2009.
The company further reported its highest ever quarterly sales of 14,28,030 two-wheelers in the third quarter of the current fiscal, which was fuelled by half million-plus unit sales in the months of October and December 2010.
The company crossed the five million unit sales mark for the first time in its history during the calendar year 2010.
The company's scrip at the Bombay Stock Exchange (BSE) went down by 5.27 percent at the close of the day's trading.

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