Hero Honda reports 21pc jump in sales for Q1

New Delhi, July 11: Two-wheeler major Hero Honda today reported a net profit of Rs 238 crore for the first quarter ending June 2006, as against Rs 204 crore in the corresponding period last year.

The company posted a 21 per cent increase in it's sales at 8,32,692 two-wheelers for Q1, and sold a total of 8,10,592 motorcycles in the quarter, significantly up from 6,87,567 units sold during the corresponding period last year.

Hero Honda sold 22,100 scooters during the period, which were launched early this year.

Total turnover (sales turnover plus other income, net of excise) grew to Rs 2,417 crore, up 20 per cent from Rs 2,008 crore recorded in the corresponding period last year.

''We are commited to deliver the 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 125cc Hero Honda Glamour FI.

Hero Honda Super Splendor continues to showcase an excellent response from the market and delivered excellent sales growth in this quarter,'' Hero Honda Motors Ltd Chairman Brijmohan Lall said.

Hero Honda has announced several initiatives in this quarter to consolidate its market leadership, including 8 new launches planned for 2006, capacity expansion in existing plants at Gurgaon and Dharuhera by 4,50,000 units each, to be completed by August 2006, and increase in product capacity to 3.9 million units for this year.

The company had also announced in this quarter, 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.

Due to a substantial increase in the prices of steel, aluminum and rubber, the company plans to announce a price increase in certain models to offset the increase in raw material costs.

For the period Jan-June 2006, Hero Honda achieved a total volume sale of 15,64,584 motorcycles, as compared with 13,72,986 motorcycles during the corresponding period last year.

UNI