Cost control drives up Hero Honda net 50%

Bucking the market slowdown, motorcycle major Hero Honda posted its highest net profit in five quarters with a 50% increase in profit after tax at Rs 306.3 crore for the quarter ended September 30, 2008.

This is up from Rs 204.3 crore in the same period of the previous year and has crossed the earlier high of Rs 298.7 crore clocked in the fourth quarter of the financial year 2007. Net sales from manufacturing operations increased 35.6% to Rs 3,189 crore against Rs 2,352 crore in the second quarter of the previous fiscal.

Riding on higher motorcycle sales and rationalising input costs, the world’s largest two-wheeler manufacturer by sales also posted robust operating margins, better than both last Q2 and the first quarter of this year. Operating profit margins of the company improved to 15.26% during the quarter against 14.06% in the same period last year and 12% in the first quarter. More
Courtesy: economictimes.indiatimes.com

This entry was posted on Wednesday, October 22nd, 2008 at 12:02 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.