The Hindu Business Line : Hero Honda rides on robust sales, launches

Robust sales, cost management initiatives and new launches made Hero Honda record a strong growth in its net profit for the fourth quarter and the financial year ended March 31, 2008.

The company managed to increase its net sales at a time of declining motorcycle sales in the country.

“We have been able to improve our profitability in tandem with our increasing market share. All through the year, we have consistently increased our market share. The financial numbers reflect the strong focus on the bottomline. Several cost rationalisation initiatives were also taken, which have yielded in the improved bottomline,” said Mr Pawan Munjal, Hero Honda, Managing Director, in a statement.

“However, for the industry as a whole, the steadily rising input costs remain a concern area. The price of steel is at an all-time high, and the prices of other commodities are also on the rise. For more than a year, the industry has also been reeling under high interest rates and lack of consumer finance. Going forward, we expect the Government to address these issues for the industry to be able to make a turnaround,” Mr Munjal said.

During the financial year 2007-08, Hero Honda introduced new models including the 150-cc Hunk in the premium segment, Splendor NXG in the deluxe segment, and refreshed Pleasure in the scooter segment. The company sold 33,37,142 units and garnered 52 per cent of the domestic motorcycle market.

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