Hero MotoCorp (HMCL) on Thursday reported net profit of Rs 488 crore for the third quarter ended December 31, 2012, down 20 per cent from Rs 613 crore in the corresponding period last year.

However, the company’s turnover (net sales and other operating income) went up by 2.5 per cent to Rs 6,188 crore for the October-December compared with Rs 6,036 crore in the same period of 2011.

“The last two quarters have been challenging for the Indian auto industry on account of the delayed monsoons, rising fuel prices and subdued sentiments. However, we have had good growth this festive season,” Pawan Munjal, Managing Director and Chief Executive Officer, HMCL, said.

Despite the overall market slowdown and a seasonally weak December month, the company reported volumes of 15,73,135 units in despatch sales in the third quarter this fiscal.

The company said this came on the back of record retails sales of more than 1.1 million units in the festive months of October and November, a growth of more than seven per cent over the corresponding period in the previous year.

“This trend may be an early sign of recovery and we hope the domestic two-wheeler industry will revert to higher growth rates in near future. Whenever that happens, we will be geared up to meet the upsurge in demand,” Munjal said.

The company recently commenced work on its new plant and the Global Parts Centre located at Neemrana in Rajasthan.

“Our global business plan will also take shape this fiscal, with the launch of Hero products in new international markets,” he added.

ronendrasingh.s@thehindu.co.in

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