HERO HONDA RECORDS BEST-EVER QUARTERLY SALES & TURNOVER IN Q2’11

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Riding on its record quarterly sales of 12,85,944 two-wheeler units in the second quarter (July-September) of this fiscal, Hero Honda Motors Ltd (HHML), the world’s largest two-wheeler manufacturer, today reported its best-ever quarterly turnover.

Fuelled by its four lakh-plus sales in each month of Q2 of Financial Year (FY) 2010-11, Hero Honda registered a total turnover (Net Sales & Other Operating income) of Rs. 4551.95 crores. The company’s turnover in the corresponding period last fiscal (July-September 2009-10) was Rs 4069.60 crores.

The H1 (April-September) of FY’ 10-11 also witnessed another milestone in the onward march of Hero Honda as the company for the first time crossed the 25 lakh plus units of sales in one half of a fiscal year.

The company reported profit after tax (PAT) of Rs 505.60 crores and EBIDTA margin of 13.36  per cent. This was despite rising input costs, primarily steel and aluminum, as well as BS-III-linked product up-gradation costs. The company’s PAT for the corresponding period last fiscal was Rs. 597.14 crores.

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “Hero Honda’s performance in the second quarter of this fiscal has again been very satisfying. The consistent numbers of four lakh every month for the quarter speak for the immense brand strength that our products enjoy in the market place. I attribute this to the sterling effort being put in by all our associates.”

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd said, “We are delighted to report a record quarter with highest-ever numbers which is extremely encouraging, coming as it does in the face of enhanced marketplace activities  and continued constraints in supply of certain components. A series of launches, marketing innovations and our association with India’s biggest sporting event Commonwealth Games Delhi 2010 have helped us drive the sales numbers sequentially. We are hopeful of continuing this buoyancy by further increasing our customer-reach and bringing in more launches in the balance months of the fiscal.”

Hero Honda in Q2 of FY’10-11 launched two new models. The all-new Splendor Pro was introduced to strengthen Hero Honda’s leadership in the deluxe segment. It comes with APDV engine with Advanced Pro-Series Digital Variable Ignition System. Besides this, the newly launched Super Splendor in the deluxe segment has also been received well. The company had also earlier announced two launches in the first quarter (April-June) as well.

The new launches are doing well and have been driving volumes for the company.

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Tags:  business, Chairman, Corporate Voice, Dr K K Aggarwal, Dr. Brijmohan Lall, Hero Honda Motors Ltd, india, invc, MD & CEO, Mr. Pawan Munjal, Nitin Yadav, Vikas Kumar, Weber Shandwick