With the second quarter (July-September) 2009-10 earnings at 94.9 per cent growth over the same period last year, Hero Honda Motors Ltd (HHML), the world's largest two-wheeler manufacturer, continues to set new milestones. The company’s highest quarterly earnings of all time at Rs 597.14 crores in profit after tax (PAT) represents the second consecutive record quarter of solid and growing revenues and profits.

Riding on the second consecutive quarter of record sales of more than a million units (11, 83,235) of two-wheelers, Hero Honda’s total turnover (Net sales & Other Operating income) grew to Rs. 4059.44 crore, a growth of 26.8 per cent over Rs 3202.05 crore recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 18.33 per cent in the quarter. The EBIDTA margin in the corresponding quarter (July – September FY 2008-09) was 13.58 per cent, and 17 per cent in the previous quarter (April – June FY 2009-10).

The company’s strong market position across geographies and customer segments coupled with the increasing demand for its winning brands resulted in the sales volume growth of a steady 21.7 per cent during the quarter.

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “For the past more than 25 years, Hero Honda has been making great strides as a company. There is a growth culture embedded within the company, which gives us a strong reason to believe that the best is yet to come. We would like to thank our employees for their efforts and also extend our thanks to our customers, suppliers, dealers, and our joint venture partners, whose loyal support contributes immeasurably to the company’s ongoing success and its world leadership of the two wheeler industry.”

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said “I am delighted to share such outstanding results today as we post yet another consecutive quarter of solid execution, with record sales and the highest-ever revenue and earnings for the company. The company has been continuously reporting a strong balance sheet and solid cash flow. It is our sustained focus on innovation and operational efficiency across functions that has helped drive the sequential growth in our business. More than ever, this continued strong growth confirms the company’s undisputed leadership, resilience and growth potential.

“Sales in the second quarter have also benefited from our focus on introducing market leading products during the festive season. Hero Honda will continue to innovate further and deliver on its long term growth strategy.”

With over 59 per cent market-share in the domestic motorcycle market and with sales of over a million units for the second consecutive quarter, the robust top line growth has largely contributed to the strong bottom line growth.

2009 has proved to be a remarkable year for Hero Honda Motors Ltd. The company has been consistently reporting despatch sales of more than 3 lakh units each month this calendar year, and for two consecutive months of August and September, sales crossed the landmark figure of more than 4 lakh two-wheelers.

One of the key pillars of Hero Honda’s winning strategy has been to consistently keep introducing new, advanced products and maintaining a balanced product portfolio. True to this strategy and with the objective of bringing added cheer to customers during the festive season, the company recently launched three new models. The new premium bike from the Hero Honda stable - the fuel injected ZMR has clearly turned out to be a favorite amongst bikers across the country. With the introduction of the ZMR, Hero Honda now offers as many as five models in the premium segment - Hunk, CBZ Xtreme, Achiever, Karizma and the ZMR. The company also introduced two more models – a refreshed version of the best-selling Hunk in the premium segment, and a Special Edition Splendor+ to commemorate the iconic brand’s landmark cumulative sales of One Crore. The company has lined up some more launches in the coming months.

Taking forward its commitment to promote sports in the country, the company recently hosted the 2009 edition of the Hero Honda Indian Open Golf with participation from international marquee players at the DLF Golf Club, Gurgaon.

Hero Honda is also going to be the title sponsor of the FIH Men’s Hockey World Cup, to be held in Delhi next year. With this, Hero Honda is now actively involved with the promotion of all major sports in the country – cricket, football, hockey and golf.

The company has been consistently receiving accolades this year as it won coveted awards across segments, for its products, innovation, and for exceeding customer expectations. The company was honored with the award of the “Most Preferred Two Wheeler Company” at the recent CNBC Awaaz Consumer Awards. Mr. Pawan Munjal, MD & CEO of the company was awarded the “CNBC TV18 Overdrive Man of the Year Award”. In August, Hero Honda was adjudged the “Company of the Year” at the prestigious Economic Times Corporate Excellence Awards 2009. This follows the “Most Trusted Brand” (two-wheelers category) 2009 award by Brand Equity, and “Trusted Brand” (Motorcycles) 2009 award by Reader’s Digest magazine. Hero Honda was also honored with the Dun & Bradstreet, Rolta Corporate Awards 2008 in the two-wheeler category.

Courtesy: Hero Honda India

Best Selling Hero Honda Bikes:
Hero Honda Hunk
Hero Honda CBZ Xtreme
Hero Honda Splendor NXG
Hero Honda Splendor Plus
Hero Honda Karizma
Hero Honda CD-Deluxe
Hero Honda Splendor Plus
Hero Honda Pleasure
Hero Honda Achiever
Hero Honda Glamour

Related News:
New variants of Hunk and Splendor from Hero Honda
Hero Honda launches new Karizma ZMR at Rs 91000
Hero Honda’s Haridwar plant expansion proves beneficial
Hero Honda Q1 net profit up 83% at Rs 500cr

Related Books:
The Motorcycle Yearbook
Girl on a Motorcycle
Motorcycles Identification and Price Guide

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Posted by Naresh Koshti on 23 October, 2009 3:10:59 PM IST #