Sensing the slowdown in the market, we led the way in adjusting our production plans in Aug and Sep, and this has been reflected in our quarterly sales figures: Pawan Munjal
BS Reporter / New Delhi Oct 24, 2012, 00:37 IST
Hero MotoCorp, the largest two-wheeler manufacturer in India, has reported a 27 per cent decline in net profit to Rs 440.58 crore in the July-September quarter, as sales dropped on slowing demand and tough competition.
The two-wheeler market in India has witnessed the adverse impact of the economic slowdown, rising fuel costs and relatively high interest rates. Hero’s sales, on the other hand, have been impacted due to a strong push by its previous partner Honda Motor Co, which has been trying to get a strong foothold in the Indian market after it broke up with Hero last year.
“Sensing the slowdown in the market, we led the way in adjusting our production plans in August and September, and this has been reflected in our quarterly sales figures,” Pawan Munjal, managing director and chief executive office, Hero MotoCorp, said in a statement.
Hero sold 13,32,805 units during the quarter under review, down 13.67 per cent compared to 15,44,315 units during the corresponding period of the last financial year.
The company’s stock dropped 1.9 per cent on the Bombay Stock Exchange before the results were announced, and was last traded at Rs 1,795.95. The company had reported its net profit at Rs 603.62 crore in the July-September quarter of the last financial year. Hero’s net income during the July-September quarter stood at Rs 5,187.46 crore, down 10.96 per cent as against Rs 5,826.15 crore in the corresponding period last year.
The company’s operating margin during the quarter was at 13.86 per cent, down from 15.76 per cent in the corresponding quarter last fiscal. During the previous quarter (April-June), it reported the operating margin at 15 per cent. However, Munjal is hopeful the... [continues]
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