Hero MotoCorp Q2 profit rises 19.4 percent

October 18th, 2011 - 9:54 pm ICT by IANS  

New Delhi, Oct 18 (IANS) Two-wheeler major Hero MotoCorp Ltd Tuesday posted an increase of 19.4 percent in net profit at Rs.603.62 crore during the quarter ended Sep 30, over the same period of the previous financial year.

The turnover stood at Rs.5,829.32 crore during the quarter under review, up 28 percent as against Rs.4,551.95 crore during the same period of 2010-11, the company said in a statement.

The firm, earlier known as Hero Honda, also reported its highest ever quarterly sales of 15.4 lakh vehicles, a growth of 20 percent, compared to 12.9 lakh vehicles in the year ago period.

“This performance has come despite the rising food inflation and fuel costs. These two areas remain a concern for the industry as it might adversely impact consumer spendings in the coming months,” said Pawan Munjal, managing director and chief executive officer, Hero MotoCorp.

“However we remain confident of carrying forward the buoyancy in our sales. We expect our retail volumes to pick during the festive month of October, and in anticipation of rising market demand demand for our products in the coming months, we have been augmenting capacity at our existing plans,” he added.

Recently the company launched its first motorcycle under the new “Hero” brand name. The 150 cc Impulse is priced at Rs.66,800 (ex-showroom Delhi). Hero MotoCorp also set to being new vehicles including the 110 cc scooter “Maestro” in the coming months.

At the Bombay Stock Exchange, the shares of the company closed 0.41 percent lower at Rs.1,984.85.

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