Hero Honda Q2 net zooms 95 per cent to Rs597 crore

Hero Honda Motors Ltd, the largest motorcycle maker in the country, today reported a 95 per cent rise in its net profit for the July-September 2009-10 quarter. Net profit of the company rose 94.95 per cent to Rs597.14 crore in July-September 2009-10 from Rs306.3 crore in the same quarter of the previous fiscal.

Hero Honda Motors, a joint venture between the Hero Group and Japan's Honda Motor Company, said net sales for the quarter rose 26.77 per cent to Rs4,059.44 crore while total income for the quarter rose 26.78 per cent to Rs4,128.15 crore year-on-year

Earnings per share stood at Rs29.90 during the quarter, up 94.92 per cent from the year-ago period.

Hero Honda saw sales of its premium bikes rise 40 per cent against the 22 per cent overall growth in product sales for the quarter.

Profit margin also widened to 18.3 per cent from 13.6 per cent amidst a rise in volume sales, a lowering of raw material costs and reduction in administrative and plant expenses.

Shares of the company today declined Rs48.15 (2.9 per cent) and settled at Rs1,612.90 while a total of 70,155 shares changed hands at the BSE.