HERO HONDA
The country’s largest two-wheeler company, HeroHonda Motors on Tuesday reported a 34.6% leap in net profit at Rs 402.17 crore during the fourth quarter of 2008-09 (January-March) as against Rs 298.7 crore in the corresponding quarter of the preceding financial year. Its net operating income went up by 22.2% in the fourth quarter at Rs 3422.52 crore vis-à-vis 2799.89 crore in the corresponding quarter of 2007-08.
The company’s EBIDTA margin increased from 14.5% in the third quarter to 16.04% for the fourth quarter. This comes on the backdrop of 13% jump in sales between January and March at 9,97,855 units as compared to 8,84,075 units in the January-March quarter of 2007-08.
“Ever since the Haridwar plant has gone on stream, we have increased production to 4,000 units a day and plan to roll out 1 million units from there in 2009-10 to reap the benefits of tax concessions.
“Consequently, the effective tax rate for the company has come down from 31.5% to 28% now,” said Pawan Munjal, managing director and CEO, Hero Honda Motors.
According to Munjal, the company’s margin in the fourth quarter has also benefited from the various cost cutting measures adopted at different levels as well as softened commodity prices.
“Commodity prices had started softening in the third quarter but their impact could only be realised in the fourth quarter in the form of improved margins.
With further reduction of 100 bps in their prices and negligible possibility of commodity prices hardening once again, the benefit would be spread across the whole of the current financial year.
Consequently, we hope to maintain the EBIDTA margins at the existing levels, at least in the first two quarters of this financial year,” he says.
For the year ended March 31, 2009, Hero Honda reported a jump of 32.4% in net profit at Rs 1281.76 crore as against Rs 967.88 crore in 2007-08. It’s net operating income went up by 19.2% at Rs 12356.88 crore vis-à-vis Rs 10364.54 crore after the two-wheeler giant reported a jump of 11.5% in sales at 37,22,000 units as against 33,37,142 units in 2007-08.
Hero Honda’s EBIDTA margin improved in 2008-09 at 14.16% as compared to 13.33% for 2007-08. Consequent to this, the company has announced a dividend of Rs 20 per share as against the payout of Rs 19 per share in the last financial year.
Hero Honda shares closed lower by 2.11% on Tuesday on the BSE at..The country’s largest two-wheeler company, Hero Honda Motors on Tuesday reported a 34.6% leap in net profit at Rs 402.17 crore during the fourth quarter of 2008-09 (January-March) as against Rs 298.7 crore in the corresponding quarter of the preceding financial year. Its net operating income went up by 22.2% in the fourth quarter at Rs 3422.52 crore vis-à-vis 2799.89 crore in the corresponding quarter of 2007-08.
The company’s EBIDTA margin increased from 14.5% in the third quarter to 16.04% for the fourth quarter. This comes on the backdrop of 13% jump in sales between January and March at 9,97,855 units as compared to 8,84,075 units in the January-March quarter of 2007-08.
“Ever since the Haridwar plant has gone on stream, we have increased production to 4,000 units a day and plan to roll out 1 million units from there in 2009-10 to reap the benefits of tax concessions.
“Consequently, the effective tax rate for the company has come down from 31.5% to 28% now,” said Pawan Munjal, managing director and CEO, Hero Honda Motors.
According to Munjal, the company’s margin in the fourth quarter has also benefited from the various cost cutting measures adopted at different levels as well as softened commodity prices.
“Commodity prices had started softening in the third quarter but their impact could only be realised in the fourth quarter in the form of improved margins.
With further reduction of 100 bps in their prices and negligible possibility of commodity prices hardening once again, the benefit would be spread across the whole of the current financial year.
Consequently, we hope to maintain the EBIDTA margins at the existing levels, at least in the first two quarters of this financial year,” he says.
For the year ended March 31, 2009, Hero Honda reported a jump of 32.4% in net profit at Rs 1281.76 crore as against Rs 967.88 crore in 2007-08. It’s net operating income went up by 19.2% at Rs 12356.88 crore vis-à-vis Rs 10364.54 crore after the two-wheeler giant reported a jump of 11.5% in sales at 37,22,000 units as against 33,37,142 units in 2007-08.
Hero Honda’s EBIDTA margin improved in 2008-09 at 14.16% as compared to 13.33% for 2007-08. Consequent to this, the company has announced a dividend of Rs 20 per share as against the payout of Rs 19 per share in the last financial year.
Hero Honda shares closed lower by 2.11% on Tuesday on the BSE at Rs 1100.90 after touching an intra-day high of 1128.10. The results were announced after trading hours.
According to Munjal, the performance of the company even in times of such slowdown can be attributed to the fact that most of the company sales take place on cash.
“Over 75% sales of Hero Honda two-wheelers happen on cash and that too in tier II cities, semi-urban and rural parts of the country.
“Since these areas are not dependant on organised retail financing in such big way, the impact of liquidity crunch has been minimum on the company’s sales,” he said
The company’s EBIDTA margin increased from 14.5% in the third quarter to 16.04% for the fourth quarter. This comes on the backdrop of 13% jump in sales between January and March at 9,97,855 units as compared to 8,84,075 units in the January-March quarter of 2007-08.
“Ever since the Haridwar plant has gone on stream, we have increased production to 4,000 units a day and plan to roll out 1 million units from there in 2009-10 to reap the benefits of tax concessions.
“Consequently, the effective tax rate for the company has come down from 31.5% to 28% now,” said Pawan Munjal, managing director and CEO, Hero Honda Motors.
According to Munjal, the company’s margin in the fourth quarter has also benefited from the various cost cutting measures adopted at different levels as well as softened commodity prices.
“Commodity prices had started softening in the third quarter but their impact could only be realised in the fourth quarter in the form of improved margins.
With further reduction of 100 bps in their prices and negligible possibility of commodity prices hardening once again, the benefit would be spread across the whole of the current financial year.
Consequently, we hope to maintain the EBIDTA margins at the existing levels, at least in the first two quarters of this financial year,” he says.
For the year ended March 31, 2009, Hero Honda reported a jump of 32.4% in net profit at Rs 1281.76 crore as against Rs 967.88 crore in 2007-08. It’s net operating income went up by 19.2% at Rs 12356.88 crore vis-à-vis Rs 10364.54 crore after the two-wheeler giant reported a jump of 11.5% in sales at 37,22,000 units as against 33,37,142 units in 2007-08.
Hero Honda’s EBIDTA margin improved in 2008-09 at 14.16% as compared to 13.33% for 2007-08. Consequent to this, the company has announced a dividend of Rs 20 per share as against the payout of Rs 19 per share in the last financial year.
Hero Honda shares closed lower by 2.11% on Tuesday on the BSE at..The country’s largest two-wheeler company, Hero Honda Motors on Tuesday reported a 34.6% leap in net profit at Rs 402.17 crore during the fourth quarter of 2008-09 (January-March) as against Rs 298.7 crore in the corresponding quarter of the preceding financial year. Its net operating income went up by 22.2% in the fourth quarter at Rs 3422.52 crore vis-à-vis 2799.89 crore in the corresponding quarter of 2007-08.
The company’s EBIDTA margin increased from 14.5% in the third quarter to 16.04% for the fourth quarter. This comes on the backdrop of 13% jump in sales between January and March at 9,97,855 units as compared to 8,84,075 units in the January-March quarter of 2007-08.
“Ever since the Haridwar plant has gone on stream, we have increased production to 4,000 units a day and plan to roll out 1 million units from there in 2009-10 to reap the benefits of tax concessions.
“Consequently, the effective tax rate for the company has come down from 31.5% to 28% now,” said Pawan Munjal, managing director and CEO, Hero Honda Motors.
According to Munjal, the company’s margin in the fourth quarter has also benefited from the various cost cutting measures adopted at different levels as well as softened commodity prices.
“Commodity prices had started softening in the third quarter but their impact could only be realised in the fourth quarter in the form of improved margins.
With further reduction of 100 bps in their prices and negligible possibility of commodity prices hardening once again, the benefit would be spread across the whole of the current financial year.
Consequently, we hope to maintain the EBIDTA margins at the existing levels, at least in the first two quarters of this financial year,” he says.
For the year ended March 31, 2009, Hero Honda reported a jump of 32.4% in net profit at Rs 1281.76 crore as against Rs 967.88 crore in 2007-08. It’s net operating income went up by 19.2% at Rs 12356.88 crore vis-à-vis Rs 10364.54 crore after the two-wheeler giant reported a jump of 11.5% in sales at 37,22,000 units as against 33,37,142 units in 2007-08.
Hero Honda’s EBIDTA margin improved in 2008-09 at 14.16% as compared to 13.33% for 2007-08. Consequent to this, the company has announced a dividend of Rs 20 per share as against the payout of Rs 19 per share in the last financial year.
Hero Honda shares closed lower by 2.11% on Tuesday on the BSE at Rs 1100.90 after touching an intra-day high of 1128.10. The results were announced after trading hours.
According to Munjal, the performance of the company even in times of such slowdown can be attributed to the fact that most of the company sales take place on cash.
“Over 75% sales of Hero Honda two-wheelers happen on cash and that too in tier II cities, semi-urban and rural parts of the country.
“Since these areas are not dependant on organised retail financing in such big way, the impact of liquidity crunch has been minimum on the company’s sales,” he said
