Hero Honda Q2 net down 9.22 pc to Rs 216 cr

Mumbai, Oct 25 (UNI) Hero Honda Motors Ltd has posted a net profit after tax of Rs 215.97 crore for the quarter ended September 30, 2006, as compared to Rs 237.92 crore for the quarter ended September 30, 2005, a decline of 9.22 per cent.

Announcing the results, the company said its total turnover (net of excise) has increased from Rs 2,209.36 crore for the quarter ended September 30, 2005, to Rs 2,289.44 crore for the quarter ended September 30, 2006.

Further the Company has informed that, Sunil Kant Munjal has been appointed as a Non-executive Director in the casual vacancy caused due to the resignation of Satyanand Munjal, Non-executive Director effective from October 25, 2006.

According to Pawan Munjal, Managing Director, of the Company, ''Hero Honda continues on its planned growth path. The launch of the four new models will positively impact our topline growth. The Company has increased investments in brand building which will help the Company achieve long term market growth and further consolidate its leadership position.'' Mr Munjal further said, ''the impact on operating margins has been due to increased inflationary costs in raw materials - steel, aluminum and rubber etc. The Company has significantly countered this increase in raw material cost through improved efficiencies in production and cost management,'' he added.

UNI SN MJ SKB1658