Hero Honda Q2 net down 15% despite record sales

Hero Honda Q2 net down 15% despite record sales

New Delhi: The country’s largest two-wheeler maker Hero Honda on Friday reported 15.32% dip in net profit at Rs505.60 crore for the quarter ended 30 September, despite clocking its best ever quarterly sales.

The company had posted a net profit of Rs597.14 crore in the same period last fiscal, the company today said in a statement.

Net sales during the second quarter was at Rs4,511.29 crore, as against Rs4,040.10 crore in the year-ago period, up 11.66%, the statement said.

Two-wheeler sales during the quarter was at 12,85,944 units, as against 11,83,235 units in the same period a year ago.

The company said its sales in terms of volume and turnover was its best ever achieved in a quarter.

“We are hopeful of continuing this buoyancy by further increasing our customer reach and bringing in more launches in the remaining months of the fiscal," Hero Honda Motors managing director and CEO Pawan Munjal said.

During the quarter, the company said consumption of raw materials increased by 22.29% to Rs3,385.74 crore from Rs2,768.60 crore in the same period a last year.

The company said it witnessed rising input costs, primarily steel and aluminium, as well as BS-III-linked product up-gradation costs.

Hero Honda had launched two new models, Splendor Pro and new Super Splendor, during the second quarter.

The shares of the company today fell 1.86 per cent and closed at Rs1,865.80 a piece on the Bombay Stock Exchange.