The world's largest two-wheeler manufacturer, Hero Honda, on Thursday reported a 13.4% jump in net profit for the April-June quarter beating estimates as its motorcycles continued to see robust growth in sales.
Hero Honda’s profit in the quarter was Rs 557.89 crore compared with Rs 491.69 crore it made a year ago. The company’s turnover rose by an impressive 32.2% to Rs 5,637.64 crore from Rs 4,264.61 crore in 2010.
This was the company's first rise in profit after four consecutive quarters of decline as its bottomline was battered by rising cost of raw materials and an intense onslaught by rivals Bajaj Auto and TVS Motor.
“The numbers are in line with the exponential growth that the company has been w itnessing over the last several years,” said Pawan Munjal, managing director and chief executive officer, Hero Honda Motor Ltd.
“Our first quarter performance has set the outlook for coming quarters, and we are confident of achieving our initial guidance (for fiscal 2012) to sell over six million units.”
During the 3 month period, Hero Honda sold 15,29,577 unit two wheelers, its highest ever in any quarter, registering a growth of 24% year-on-year.