Thursday, May 3, 2012

Hero Moto Corp Q4 net up 20%; raises prices by up to Rs 1,000


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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