Hero Honda Q1 net zooms 83 pc; crosses 10 lakh mark
Country's largest two-wheeler maker Hero Honda on Friday reported a jump of 83.28 per cent in its net profit at Rs 500.11 crore for the quarter ended June 30 on account of robust sales amid softening input costs.autos Updated: Jul 31, 2009 18:12 IST
Country's largest two-wheeler maker Hero Honda on Friday reported a jump of 83.28 per cent in its net profit at Rs 500.11 crore for the quarter ended June 30 on account of robust sales amid softening input costs.
The net profit for the same period in the last fiscal stood at Rs 272.87 crore, the company said in a statement.
Total income of the company rose by 33.72 per cent to Rs 3,864.92 crore during the April-June period of this fiscal from Rs 2,890.25 crore in the same quarter a year earlier.
The company has crossed the 10-lakh-units mark in a single quarter for the first time by selling 11,18,987 units from 8,94,244 units in the year-ago period, up 25.13 per cent.
"Several other key factors such as cost rationalisation across the board, softening of commodity prices and tax benefits also contributed to the bottom line," it said.
The substantial tax benefit accrued on account of the company's full utilisation of the tax benefits available for its Haridwar plant also resulted in bringing down the overall effective tax rate, the statement added.
"Our ongoing focus on continuous innovation in every sphere of our business and fiscal discipline has allowed us to leverage our double-digit sales growth into robust earnings for the quarter," Hero Honda Motors MD and CEO Pawan Munjal said.