 "Hero beats estimates, net up 19% at Rs 604 crore")
Hero MotoCorp reported a 19 percent rise in its net profit to Rs 603.6 crore for the September 2011 quarter from Rs 505.6 crore in the corresponding year-ago period, much better than analyst expectations. Net sales were at Rs 5,791 crore, reflecting a growth of 28 percent year-on-year.
However, the stock was almost flat today closing 0.4 percent lower at Rs 1,984.85.This is the first quarter for which the company announced its results after donning a new identity, it said in its press release.
[caption id=“attachment_110875” align=“alignleft” width=“380” caption=“The companysold 15,44,315 units of two wheelers in the September 2011 quarter, a growth of 20 percent over the year-ago quarter.”]
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“Our solid performance over the past several months amply demonstrates our ability to sustain growth against odds. The manner in which we have started our new journey vindicates our confidence in our future. Our bottom line results reflect our record top line performance over the past six months. This performance has come despite rising food inflation and fuel costs” said Pawan Munjal, MD & CEO.
While he remained concerned about inflation and fuel cost, he was confident of carrying forward the buoyancy in sales. He expects retail volumes to peak in the festive month of October and to take advantage of this they have already increased capacity at their existing plants.
Some of the key takeaways from its press release are :
•Company sold 15,44,315 units of two wheelers in the September 2011 quarter, a growth of 20 percent over the year-ago quarter.
•It has sold over 3 million units in the first half of fiscal 2012, reflecting a growth of 22 percent compared to last year.
Impact Shorts
More Shorts•Sunil Kant Munjal has been appointed as the Joint MD of the company for five years.
•It has started dispatching the 150cc - Impulse, India’s first dual purpose on road-off road bike and its priced at Rs 66,800.
•Several new launches are also in the pipeline including the 110 cc scooter - Maestro.