Top two-wheeler
manufacturer Hero MotoCorp 's fourth quarter net profit rose 20% year-on-year
to Rs 604 crore, helped by highest ever sales in the quarter. The company also
announced it is raising product prices by Rs 500-1,000 effective Wednesday to
offset rising input costs.
The company's total
turnover was up 12% from a year ago to Rs 6,035 crore in Jan-March.
The company's net
profit was a tad lower than analysts' expectation of Rs 616 crore, on
revenue of Rs 5,985 crore, according to a CNBC-TV18 poll.
During the
three-month period, Hero MotoCorp sold 15,72,027 units, up 8% from a year ago.
Its EBITDA margin
for the fourth quarter was at 15.33%.
Hero MotoCorp had
ended its joint venture with Japan's Honda in 2010 and FY12 was its first solo
year of operations. It sold 62,35,205 two-wheelers last fiscal, up 15.4%
year-on-year.
ROAD AHEAD
The company is
"raising the bar" to bring in technologically advanced two-wheelers
with value added features, said MD and CEO Pawan Munjal. Last fiscal it had
inked deal with US-based Erik Buell Racing and Austria-based AVL to scale up
and supplement its in-house research and development and engine technologies.
He said Hero
MotoCorp is actively looking at new markets in Africa, Latin America and other
parts of the world to expand its global footprint.
"Our exports to
some of these markets will commence in the first half of this fiscal,"
Munjal said.
It plans to add
capacity to its three existing manufacturing plants to meet growing demand for
its products. It also plans to open a parts centre, details of which, will be
announced soon, he said.
It also plans to add
400 more touch points to its distribution base in the current fiscal year.
Hero MotoCorp shares
closed up 0.2% at Rs 2,244.80 on NSE.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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