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  Current News 2007
 

  HERO HONDA ONCE AGAIN OUTPERFORMS INDUSTRY ON GROWTH IN
  Q2 (FY 2007-2008)
  Impressive performance across segments turnover of Rs. 2391
  Crores in Q2 Ebidta of 12.39%

Recap of Q2

  • Hero Honda bucked the industry growth trend, posting better than industry results in the last quarter
  • Its market share in motorcycles in the domestic market has grown upward of 50%
  • New launches including refreshed Passion Plus and Super Splendor reported good numbers
  • The brand Hero Honda awarded the "most preferred two-wheeler brand" at the CNBC Awaaz Awards
New Delhi, October 18, 2007: Hero Honda Motors Ltd., the world's largest two-wheeler manufacturer, reiterated its undisputed leadership by reporting better-than-industry performance in Q2 (FY 2007-08). The company clocked 7,56,633 units of two wheeler sales during the period. Hero Honda's cumulative sales for the period April '07 - September '07 stood at 15,59,486 units.

In the second quarter (July-September) this year, the company reported a Net Profit of Rs 204.33 crores , as against Rs. 215.97 crores in the corresponding period last year. Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 2391.36 crores , a growth of 4.5% over Rs. 2289.44 crores recorded in the corresponding period last year. The company has recorded an EBIDTA margin of 12.39% in the quarter. The EBIDTA margin in the previous quarter (Apr-Jun'07) was 10.76%.

In the first six months (April-September) of this financial year, the company reported a Net Profit of Rs 394.17 crores , as against Rs. 453.71 crores in the corresponding period last year. Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 4878.26 crores , a growth of 3.7% over Rs. 4706.09 crores recorded in the corresponding period last year.

Hero Honda's strategy for aggressive top line growth through market share gain across segments has paid off well. Despite the slowdown in the two wheeler industry, Hero Honda's share in the domestic motorcycles market has grown upward of 50%.

The company has been successful in maintaining its strong growth momentum across segments.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd ., "The last few months have been a disappointment for the auto industry with rising interest rates hurting sales. However, we have been able to post better than industry figures. During the last six months, we fulfilled our commitment to the customers by providing latest technologies and style in our models. We have launched five new products in this period - Splendor NXG, refreshed Pleasure, the new Super Splendor, new Passion Plus and of course our most recent launch Hunk."

Mr. Pawan Munjal, Managing Director and CEO, Hero Honda Motors Ltd, said "We have been focusing on cost management across functions. There has also been some respite in input costs such as aluminum during the last quarter. Our financial numbers in Q2 (July 07 - September 07) reflect these developments. As for the future, a lot will depend on the interest rates movement, and commodity prices."

Last week, Hero Honda achieved yet another milestone of two crore bikes . In a country of a billion people, it signifies a Hero Honda bike in every 50 people. To commemorate this momentous occasion Hero Honda has launched "BIKE-A-THON" - a marathon of bikes flagged off from eight cities across the country, which will converge near Delhi towards the end of this month. This achievement is indeed reflective of the strength of our brands and the trust that Hero Honda has built amongst its customers over the years.

The sales numbers for the month of September represent a good start to the forthcoming festival season. The company expects to keep up the momentum and further build on this platform going forward.

 
For further information, please contact:  

Sanjiv Singh/ Santanu Gogoi
Corporate Voice | Weber Shandwick
Tel: 011 - 40501200
M: 9818430943 / 9810424271
 
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