Hero Honda on growth path, posts Rs 402 crore profit
India's largest two-wheeler manufacturer, Hero Honda posted a profit of Rs 402.2 crore during the quarter ended 31st March 2009. This figure represents a 35% increase over the Rs 298.7 crore in profits, which the company earned in the year-ago period.
Hero Honda's sales for the quarter stood at Rs 3,411.8 crore, a 22.34% increase over sales of Rs 2,788.65 crore which the company netted in Q4, FY 2007-08.
According to Hero Honda, a high percentage of its sales come from rural and semi-urban areas, where customers tend to buy vehicles on full cash down basis rather than opt for bank loans or finance schemes. Hence, sales haven't been severely affected by the ongoing credit crunch.
Hero Honda has also implemented significant cost-cutting measures, hence boosting profitability, and the company also benefited from tax savings due to the location of its newest factory near Haridwar, in Uttarakhand. Finally, the fact that steel and aluminium prices have come down also helped the company in lowering overall cost of production, increasing the company's profit margins in the process.
Hero Honda earned Rs 12,319.12 crore during 2008-09, a 19.2% growth over the year-ago figure. The company's net profit for FY 2008-09 stood at Rs 1,281.8 crore, a 32.4% increase over its profits in the previous financial year.
Between the 1st of April 2008 and the 31st of March this year, Hero Honda sold 3.7 million units (including domestic sales and exports), a 12% growth over sales in the year-ago period. The 12% growth is especially significant in light of the fact that the entire two-wheeler industry in India grew by only 3% in the same period.
[Via: indiaautomotive]
Bajaj Auto Q2 net drops 22.50%
India`s second largest two-wheeler maker - Bajaj Auto - on Thursday announced a 22.50% decline in its standalone net profit for the quarter ended September 2008. During the quarter, the profit of the company fell to Rs 1,849.10 million from Rs 2,386 million in the same quarter, last year.
Total income for the quarter climbed 7.65% to Rs 25,705.30 million from Rs 23,877.70 million in the prior year period. Earnings per share stood at Rs 12.80 for the quarter ended September 2008. Shares of the company declined Rs 10.8, or 2%, to trade at Rs 530. The total volume of shares traded was 3,353 at the BSE.
[Via: myiris]
Yamaha To Sell More Than Half A Million Bikes In 2009
In order to expand its business footprints in India, Japanese two-wheeler manufacturer Yamaha is eyeing to sell more than half a million bikes in 100 to 125 cc segments in 2009. The company is striving to add 80 more new dealers this year under its brand to compete with its strong competitors.
Yamaha is aiming to sell more than two lakh units this year, as compared to 1.20 lakh units last year. Commenting on the plans, Mr Tsutomu Mabuchi, CEO and Managing Director of Yamaha Motor India said, "Our fundamentals in the country are not as strong as our competitors. For the last one year, we are working to improve our fundamentals ... which include setting up strong sales, services, dealership and spare parts network."
Highlighting company's performance in last one year, Mr. Mabuchi stated that due to restructuring and launch of new bikes, sales of Yamaha in the first six months of the year has turned around. The company also plans to roll out FZ , the air cooled bike in 150cc segment in October this year.
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