Country’s largest two wheeler manufacturer Hero Honda Motors posted a net profit of INR 598.8 crore in the fourth quarter of 2009-10, its highest to date, as compared to INR 402.2 crore during the corresponding quarter of 2008-09 growth of 48.9%. The turnover for the just concluded quarter also went up by 20.2% at INR 4,122.3 crore vis a vis INR 3,430.4 crore in the corresponding quarter last year.
This comes on the back of Hero Honda’s highest ever sales in any quarter at 1,186,536 units, a growth of 18.9% from the 997,855 units in the same quarter of 2008-09.
For the financial year ended March 31, Hero Honda’s net profit surged by 74.1% at INR 2,231.83 crore as compared to INR 1,281.76 crore in the preceding financial year, while its turnover for the last financial year went up by 28.1% at INR 15,860.5 crore vis à vis INR 12,382.25 crore.
Hero Honda Motors’ total two wheeler sales went up by 23.6% last year at 4,600,130 units as compared to 3,722,000 units in 2008-09, higher than the company’s earlier projection of four million units for 2009-10.
The company’s EBITDA margin for the year ended March 31 stood at 17.4 per cent as compared to 14.1% in 2008-09 and comes on the back of higher production from the Haridwar plant, where the company is currently enjoying five year income tax exemption and 10 years exemption in excise duty. As a result, its effective tax rate has come down to 21.2% as compared to 28% in 2008-09.
According to Mr Anil Dua senior vice president (sales and marketing), Hero Honda Motors, The company will continue to maintain the growth momentum of the last few years, though at a lower rate due to higher base effect and partial rollback of the stimulus, and hopes to sell five million units in 2010-11. This would be in line with the 12% to 15% growth of the industry and help us to maintain our market share.