There is one quote which is very popular among corporate peer groups across the globe: The higher you rise, the lower you fall. Well, it may a true happening with respect to the vicious life-cycle of human beings and growth charts of corporate groups. There is one automobile manufacturer though who has never felt the need to read that quote or spend some time pondering over it for self-motivation. Year after year and quarter after quarter, Hero Honda’s overall profits or growth or number of motorcycles sold is always on the upswing! This time too things are no different.
The country’s largest motorcycle manufacturer has registered a 79% increase in third quarter net. In the last quarter, Hero Honda registered sales of 1.1 million two-wheelers which translates into a growth of 35.5%. The manufacturer is expecting its annual sales to exceed the 4 million units mark by the next quarter ending in March. It registered a net profit of Rs.536 crores for the quarter which ended on 30th December. During the same time in the last fiscal, Hero Honda’s net profit registered was Rs.300 crores.
Hero Honda is also planning to set up new manufacturing facility provided it the existing high demand for its motorcycles continues. According to the company’s Managing Director, Pawan Munjal, Hero Honda is also looking into further augmenting their capacity in the existing manufacturing units. The manufacturer currently has three manufacturing units of which two are in Haryana and one is in Uttarakhand with a combined production capacity of 5 million vehicles a year.
In a statement issued to the media, Hero Honda has said that it is market demand to remain bullish in view of the projected GDP growth and the continued success of the government schemes directed at rural infrastructure and employment generation. We wont’ be surprised if Hero Honda continues its bull run on the profit chart and registers profit for the next quarter too.