Results: Hero Honda Q4 FY11 net profit declines

Subscribe to GoodReturns

Results: Hero Honda Q4 FY11 net profit declines
Hero Honda Ltd. announced its financial results for the fourth quarter ending March 31, 2011 on Wednesday. The company recorded a net profit of Rs. 5,016.1 million for the same period as compared to net profit of Rs. 5,988.1 million reported during the corresponding period in 2010. This is equivalent to a decline of 16.83%.

Considering the twelve month period i.e. from April - March 2011, the value of the net profit stood at Rs. 19,279.0 million, as against the profit of Rs. 22,318.3 million reported during the corresponding period last year.

While, the net sales of the company during the quarter ending March 31, 2011 stood at Rs. 53,509.4 million, as compared to Rs. 40,926.1 million for corresponding quarter of 2010, i.e. a growth of 30.74% for fourth quarter.

Considering the twelve month period i.e. from April-March 2011, the net sales was reported at Rs. 192,450.3 million, i.e. a growth of about 22.12% over the corresponding value of Rs. 157,581.8 million for the year ago period.

Despite the increase in the sales the net profit declines mainly due to the increase in the expenditure that increased by 38.71% in comparison to the sales increase of 30.74%. In addition the interest paid for the current fiscal was Rs. 81.0 million in comparison to Rs. (44.7) million in the last fiscal which also had an adverse affect on the net profit.

Moreover, the EPS of the company during the twelve months i.e. from April - March 2011, decreased to Rs. 100.53 as against Rs. 111.77 in the year ago period of 2010.

Hero Honda Motors Ltd. Board of Directors at its meeting held on May 04, 2011, inter alia, recommended a final Dividend @ 1750% i.e. Rs. 35/- per equity share of Rs. 2/- each for the financial year 2010-11.

Commenting on the performance, Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said, “It has indeed been a very satisfying performance over the past several quarters. And now we are taking strides towards our larger vision, in keeping with the aspirations of a progressive India. The future looks bright and we will strive towards providing the best to our customers."

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said “For the past few quarters, the industry has faced a multitude of issues with constraints in supply of components and rising input costs. Our margins have been under pressure on account of that.

While we expect the market demand for two-wheelers to remain bullish and we are confident of carrying on our growth trajectory, we do foresee margins to remain under pressure in the short term".

Read more about: hero honda, results, auto, bse, nse
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?