Hero Motocorp’s Q3 net profit up 43 percent

Mumabi, Jan 19 (IANS) Two-wheeler major Hero Motocorp Thursday reported a 42.89 percent increase in its net profit for the third quarter ended Dec 31 at Rs.613.03 crore from Rs.429 crore in the like period of 2010-11.

The company, in a regulatory filling at the Bombay Stock Exchange (BSE), said its total income grew by 16.92 percent in the quarter under review at Rs.6,107.73 crore from Rs.5,223.69 crore in the third quarter of the last fiscal.

The company further reported an earnings before interest, taxes, depreciation and amortization (EBIDTA) margins of 15.63 percent.

The company also reported its highest ever quarterly sales growth of 11.3 percent at 15,89,286 units in the third quarter of 2011-12. The company sold 512,238 units in October, 536,772 units in November and 540, 276 units in December.

The company said its margins were impacted in the quarter under review by high fuel and interest costs, coupled with depreciation of the rupee against the dollar.

‘In 2011-12, the industry has been facing constraints of rising fuel prices , high interest rates and a sharp rupee deprecation. leading to increased input cost impacting the margins,’ Pawan Munjal, Hero Motocorp managing director and chief executive, said in a statement.

‘We have seen softening of commodity prices of late, which has, however been off-set by the rupee deprecation. Therefore while we expect market demand for two-wheelers to remain stable, a lot depend on the over all economic and political scenario going forward.’

The company’s scrip at the BSE closed 2.35 percent up at Rs.1,900.75 from Wednesday’s close of Rs.1,857.15.

–Indio-Asian News Service
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