Hero Honda Motors Limited has reported a 95% jump in profits for the second quarter. It has registered a net profit of Rs.597 crore for the quarter ending on 30th September compared to Rs.306 crore in the same quarter last year. Its best performance till date can be attributed to high sales, low input costs and lower tax rates. The company’s turnover has also increased by 27% while its operating margins have risen by 18.3%. Inspite of having paid dividends to the tune of Rs.475 crore, the country’s two-wheeler market leader still has a cash surplus of around Rs.4,000 crore.
The world’s largest two-wheeler manufacturer is also confident of surpassing its annual sales target of 4 million units by a huge margin. It had registered a sales figure of 3.7 million units in the previous fiscal year. The manufacturer is expecting a decrease in its margins owing to the rise in commodity prices.
According to Anil Dua, Marketing Head, Hero Honda, the company is expecting that its third quarter sales numbers will not be as high as the second or the first, hamstrung by the lack of the festive season demand spurt and a slack December.