Hero Honda profits slides by 15 per cent
Hero Honda, now the largest two wheeler manufacturer by volume has disclosed its 3Q report. The company has displayed scrolled down profits by 15% as compared to its 2Q. The...
Hero Honda, now the largest two wheeler manufacturer by volume has disclosed its 3Q report. The company has displayed scrolled down profits by 15% as compared to its 2Q. The reason behind the skewed profits is explained to be the spiralling input costs. And the bad time is still not over for the company as they have to face the same increased input cost in next quarter as well.
The conglomerate showed the third quarter sales to be 12.85 lakh units, including both bikes and scooters which is astonishingly the highest in its history. But the major reason of declined profits is the increase in material cost which took an exceptional hike from Rs 2,768 crore in last year to Rs 3,385 crore. This is an absolute 22% increase which has certainly laid an impact on the accounts. This inflated cost has cancelled out the high sales made by the company, which kept the best performance uncelebrated.
The net profit has scrolled down to Rs. 506 crore in the second quarter from Rs 597 crore year-on-year.
Market analyst believes that the company will be still facing hard times as the material price will not fall down in the last quarter. The company has underperformed according to many people. They found the performance much below the expectations from the big brand.
This time the company is facing the capacity hindrance as well so it is probably going to take a little More time to improve its position in the market.
Talking about the company shares, it has reduced to 2.2% in the BSE. With this the company is planning to enhance its capacity by 9% with an aim to increase its sales up to 50 lakh two-wheelers. This output is expected to meet the increasing demand in markets.
Press Release:
A senior company executive said, preferring not to go on record, “We are working out plans to set up a new plant as our existing capacity of 54 lakh would be exhausted in this fiscal. An announcement for a greenfield plant is expected shortly,”
Hero Splendor Plus User Reviews
- review of bike.Splendor is a good bike for daily commuters as it delivers a good mileage and smooth performance. In one word, a buget king or mileage king. Moreover maintainance is also low, parts are easily available in market. I will recommend this bike for all the office commuter as well as for local users. Overall nice bike.Read More1 1
- Hero Splendor Plus – The Everyday HeroMany people choose the hero splendor plus because it is practical and reliable commuter motorcycle. Excellent mileage around 65-70 kilometre per litre. Comfortable riding. Low maintenance and spare parts are widely available. I am happy with this bike. Easy to ride, light weight and very easy to handle. It is comfortable for beginners and city traffic. Hero has a large service network across India. Making repairs and servicing convenient. Budget friendly bike for everyday use. Yes, I would recommend hundred percent. It is trusted brand. Good resale value and easy to ride. It's engine is known for long term durability, mileage is good. Upright seating position and good suspension for daily riding.Read More2
- lord splendorIt's lord splendor what you talking about, splendor is like has it all the features mileage the beauty and the features not even a question why did i choose this bike becasue its smooth and comfortable, apple clutch kind of its great. Comfort is good, i don't i'm good with it, if youre heavy person you have to reconsider on the long run, safety no issues, mileage is top of everything, ride has been pretty good, and i love it, took many places without any trouble. If you're someone on budget and want travel as much as you want this bike will get you there no sweat, no maintenance issue at all, light wieght as it was, mileage is the best thing and its would recommend this to everyone.Read More3 1
- Good durable snd reliableHero Splendor Plus is perfect for rural areas with a durable engine, excellent mileage, low maintainance and comfortable ride. A reliable, budget friendly bike that is ideal for daily family use. Very smooth bike Comfortable for family rides, delivers excellent mileage, has a durable engine easy handling and smooth city performance. Good for rural roads and short highway trips at moderate speeds, but not high speeds. Best for daily commuters, rural riders, families, students and anyone seeking a reliable, fuel efficient, low maintainance bike for everyday use and occasional highway rides but not speed on highways not long distance.Read More2
- Hero splendor bike reviewHero splendor bike looks Stylish and smooth functioning with good mileage, about 60km per litre, comfortable seating for family members and stiff suspension. Better in village roads and on highways as well. This bike has good mileage even in village roads and definitely better mileage on highway roads .It is better option for a family person and for youngsters also, it runs smoothly even on the damaged roads. Yes, I would recommend this hero splendor bike strongly as it is suitable for all age groups and its has better performance in long rides and even in short rides with good mileage and with good controllable break system and all.Read More1