The world’s largest two-wheeler manufacturer by volume, Hero MotoCorp, on Wednesday reported a 20.33% yearly increase in net profit at Rs 603.6 crore for the quarter-ended March 31, riding on the back of record sales. Sales in January-March 2012 increased by 8% to 15,72,027 units over the previous year.
The turnover of the company also went up by 12% to R6,035 crore, with an operating margin of 15.3%.
For the full financial year, profit was up over 23% to R2378.1 crore and a corresponding near 22% growth in turnover at Rs 23,579 crore. Sale of two wheelers during the year grew by 15.4% to 62,35,205 units.
This was the company’s first solo year after parting ways with Japanese auto giant Honda Motor Corp in December 2010.
“Last year was a year when we demonstrated not just our intent and vision for the future, but also our ability to consistently deliver,” said Pawan Munjal, managing director and chief executive officer, Hero MotoCorp Ltd. “Even as the rest of the world was talking about an economic slowdown, we added over 62 lakh new two-wheelers on the country’s roads in just 12 months. We are now actively looking at new markets in Africa, Latin America and other parts of the world to expand our global footprint. Our exports to some of these markets will commence in the first half of this fiscal.”
The company also announced an immediate price hike of upto Rs 1,000 on its products due to rising input costs. “In order to partially offset the rising input costs, we have raised prices of most of our products in the range of Rs 500 to Rs 1,000,” it said.