Two-wheeler major Hero Honda Motors on Wednesday posted a 20 per cent decline in net profit after tax at Rs 2.09 billion for the quarter ended on December 31, as compared to Rs 2.61 billion in the year-ago period.
Total turnover (net of excise) of the company, however, rose by 14.83 per cent to Rs 26.99 billion in the third quarter of the current fiscal as against Rs 23.50 billion recorded in the corresponding period of 2005, Hero Honda informed the Bombay Stock Exchange.
"In this quarter, Hero Honda crossed significant milestones and received recognition from various quarters. We fulfilled our commitment to our customers by providing the latest technology and styling in our five new products launched in Q3 2006-07," Hero Honda Motors MD and CEO Pawan Munjal said.
Significant investment in marketing coupled with current levels of raw material prices have impacted operating margins as predicted at the time of second quarter results announcement and subsequently, he added.