Hero Honda Q2 net dips 9.2%;to launch Glamour
New Delhi, Oct 25 (UNI) Hero Honda Motors Ltd today posted a 9.2 per cent dip in net profit for the second quarter ended September 30, 2006, besides announcing the launch of two new variants -- new Glamour and Passion Plus Limited edition.
Its net profit stood at Rs 215.97 crore for the second quarter ended September 30, 2006, as compared to Rs 237.92 crore for the corresponding period last year.
The company's total turnover, however, increased 3.6 per cent to Rs 2,289.44 crore for the same quarter previous year.
''The impact on operating margins has been due to increased inflationary costs in raw materials - steel, aluminium and rubber etc,'' Hero Honda Motors Managing Director Pawan Munjal said.
He added that the company has significantly countered this increase in raw material cost through improved efficiencies in production and cost management.
''Hero Honda continues on its planned growth path. The launch of the four new models will positively impact our topline growth. We have increased investments in brand building which will help the company achieve long term market growth and further consolidate its leadership position,'' he said.
With the new editions the company expects to further enhance its sales growth.
While the new Passion Plus has been backed by strong communication through a new TVC, the limited Glamour is being refreshed with stylish 5-spoke alloy wheels.
The company sold 7,51,967 two-wheelers, including 21,703 scooters and the Glamour FI, which was launched in June, has exceeded sales expectations.
The new launches, including CBZ X-treme and Glamour FI, take the tally of new models launched so far by the company this fiscal to four.
The company has recently inaugurated its third plant in Haridwar.
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