Hero Motocorp Posts Record Profit

Last month was pretty crucial for every single two wheeler manufacturer as that was the time to post the quarterly result now. This quarter of the year ends on 30th of last month (September). Owing the success to the higher ever sales, the company is all set to post highest ever quarterly profit.

Hero MotoCorp has announced its highest ever profit which sums up to INR 604 crore  and a total turnover  of INR 5,829 crore for the last quarter. The company’s previous highest profit was INR 597 crore and it was posted during the second quarter of 2009 – 10.

This result is very significant for the company owing to two reasons. First is as I said this is the highest ever profit the company has ever made in a single quarter. The second is the fact that this is the first quarterly result that has come out with the company’s new banner – HeroMotocorp as against its earlier brand name – Hero Honda.

The world’s largest two wheeler maker’s net profits and the net sales for the quarter rose up by 19 per cent and 28 per cent, respectively. These results were declared soon after the market trading hours. Hero MotoCorp’s shares at the Bombay Stock Exchange BSE were down by 0.41 per cent at INR 1,984.85 on Tuesday.

Commenting about this greatest achievement of the company, Mr Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp said, “Our bottom line results reflect our record top line performance over the past six months. This performance has come despite the rising food inflation and fuel costs. These two areas remain a concern for the industry, as it might adversely impact consumer spending in the coming months.”He then added, “However, we remain confident of carrying forward the buoyancy in our sales. We expect our retail volumes to peak during the festive month of October, and in anticipation of rising market demand for our products in the coming months, we have been augmenting capacity at our existing plants.”

The month of September alone had witnessed a sales of 5.49 lakh units. The number of units sold for the entire quarter accounts to a whooping figure of 1.54 million units which is 20 per cent more than the previous quarter.

Hero Motocorp is now getting ready to launch the second product under it’s new brand name which is nothing but the ‘Maestro’ scooter. The first product was ‘Impulse’ which is a dirt bike and was launched last monday.

Author – BikeAdvice.in