Hero Honda recorded a 1.6 percent fall in Q1 of 2010-11
India's one of the largest two-wheeler producer, Hero Honda has recorded a 1.6 percent fall in quarterly net profit in first time due to Raw Materials Costs and latest Emissions...
India's one of the largest two-wheeler producer, Hero Honda has recorded a 1.6 percent fall in quarterly net profit in first time due to Raw Materials Costs and latest Emissions norms effects in the current fiscal year (2010-11). Its first decline in 11 quarters nearly three years. The company net profit was stood at 500 crore from its first quarter of 2009-10 and now is falls by 1.6 percent at Rs 492 crore in the first quarter of current financial year.
Besides, Hero Honda net sales figure also recorded by 12 percent higher at 4,297 crore in the same period. The company has bought 3,084 crore raw materials in the quarter from 2,577 crore in the same period of the last fiscal year. “Our production was down by 50,000 units in April due to battery shortage and in next two months (May and June) by 15,000 to 20,000 units due to shortage of some components,” senior vice president marketing and sales Hero Honda Motors, Anil Dua, said.
The largest producer of Hero Honda Splendor and Hero Honda Passion commuter motorcycles sold 10 percent at 1.23 million units in the quarter. with this, Hero Honda increased prices of two-wheelers by Rs. 500-1000 in June. Pawan Munjal, managing director and chief executive officer of Hero Honda said," “It has been a record quarter of highest-ever numbers, and we could have done even better but for the short supply of some components. It was a challenging quarter for the bottom line due to the rise in commodity prices. Switching over to the new emission norms also added to the expenditure.”