Hero Honda Q1 net up 16.26 pc to Rs 237.74 crore

Mumbai, July 11 (UNI) Hero Honda Motors Ltd has posted a net profit after tax of Rs 237.74 crore for the quarter ended June 30, 2006 as compared to Rs 204.45 crore for the quarter ended June 30, 2005, an increase of 16.26 per cent.

Announcing the results, the company said its total turnover (net of excise) has increased from Rs 2007.63 crore in Q1 FY 05-06 to Rs 2416.65 crore for Q1 FY 06-07.

Commenting on the results, Mr. Brijmohan Lall, Chairman of the Company said, ''Hero Honda is committed to delivering highest returns to our shareholders. This quarter has witnessed a number of industry firsts from Hero Honda, including the launch of India's first Fuel Injection motorcycle technology - the 125 cc Hero Honda Glamour Fl, while Hero Honda Super Splendor continues to showcase an excellent response from the market and delivered excellent sales growth in this quarter''.

Mr. Pawan Munjal, Managing Director of the Company said, ''Hero Honda continues on its robust growth path. We have announced several initiatives in this quarter to consolidate our market leadership including 8 new launches planned for 2006, capacity expansion in existing plants at Gurgaon and Dharuhera by 4,50,000 units each, which will be completed by August 2006 and will increase our product capacity to 3.9 million units for this year. In this quarter, we also announced the setting up of Hero Honda's third plant with a production capacity of 5,00,000 units, which will cater to market demand beyond 2007.'' UNI SN ADG VKG1735