Hero Honda net slumps 16.2 per cent on rising input costs
04 May 2011
Hit by rising costs of inputs like steel and rubber, Hero Honda Motors Ltd (HHML) India's largest two-wheeler maker, on Wednesday reported a 16.2 per cent drop in net profit for the quarter ended March 2011, despite higher sales.
Net profit for the three months to March stood at Rs501.6 crore, compared to Rs598.8 crore in the year-ago period.
Net operating income rose 30.8 per cent to Rs5,390.9 crore from Rs4,122.3 crore, while expenses on raw materials jumped 42.2 per cent to Rs3,925.1 crore from Rs2,779.4 crore a year earlier.
During January-March, HHML sold 14,54,431 units, a gain of 22.6 per cent over the same period last year.
Net profit for 2010-11 fell 13.6 per cent to Rs1,927.9 crore from Rs2,231.8 crore in 2009-10, due to higher raw material costs and payment of licence fee to its erstwhile partner, Japan's Honda Motor Corp.
Total income rose 22.3 per cent to Rs19,401.2 crore from Rs15,860.5 crore. Hero Honda sold 54,02,444 units motorcycles and scooters in 2010-11, against 46,00,130 units in the previous financial year.