Hero Honda continues assistance to Tsunami Victims
(Tuesday, January 11, 2005)

Contributes Rs. 2 Crore to PM's Relief Fund

Hero Honda Motors Ltd., along with all its associates, is continuing its efforts towards providing relief and assistance to the Tsunami victims, as its foremost priority. As a part of this endeavor, the Hero Honda Management and ancillaries have contributed an aid of Rs 2 crore to the Prime Minister's Relief Fund.

Earlier, soon after the tragedy struck, Hero Honda had set up three relief camps to carry out immediate relief operations in the affected areas. These camps operational in Nagapattinum, Chennai and Cuddalore, provided direct assistance to the survivors. These camps were run by Hero Honda employees and were supported by the local Hero Honda dealers and vendors. In addition to these camps, Hero Honda has also extended aid through the Chief Minister's Relief Fund.

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Limited, expressed his grief over the vast destruction caused by the tragedy. He said, “I feel, in this situation, it is the duty and responsibility of each and every human being to contribute, in whichever way, to help the survivors of this tragedy. We are closely monitoring the situation and will continue our assistance, to the best of our ability, to help the victims”.

Hero Honda Motors Ltd, the ‘World No.1' two-wheeler company, today announced impressive financial results for the nine-month period, April – December 2004. The results were announced following the Company's Board Meeting held today.

For the period April - December 2004, Hero Honda continued to exhibit leadership performance. Sales Volume for the period zoomed to 19,35,981 motorcycles, up by a significant 31% as compared with 14,77,429 motorcycles sold during the corresponding period in the previous year.

Total Turnover (sales turnover plus other income) for the nine-month period (Apr-Dec ‘04) increased to Rs 5587 crore , a remarkable growth of 31% over Rs 4273 crore for the corresponding period in the previous year.

Profit After Tax (PAT) for the first nine months of the FY grew to Rs 603 crore , a significant increase of 17% over Rs 517 crore for the period April-December 2003 . Nine months EPS works out to Rs 30/-.

Profit Before Tax increased to Rs 914 crore from Rs 761 crore during the corresponding period in the previous fiscal, registering an increase of 20% .

Operating Margin (EBIDT) for the nine-month period stood at 15.90% , reflecting the company's continued success in rationalizing costs, inspite of rising input costs, through prudent working capital management, increasing manufacturing efficiency and soaring sales volume.

The company recorded impressive results for the third quarter October-December 2004, as well. Motorcycle sales for the quarter jumped by an impressive 24% . The company sold 7,12,062 motorcycles during the quarter, significantly up from 5,72,196 motorcycles during the period October–December 2003. Total Turnover for the same period increased by 26% from Rs 1,626 crore to Rs 2043 crore . Profit After Tax (PAT) for the quarter increased to Rs 219 crore , a growth of 8% over Rs 203 crore in the corresponding period previous year. Profit Before Tax went up to Rs 331 crore from Rs 295 crore up by 12% . Operating Margin (EBIDT) for the third quarter stood at an impressive 15.53% .

Immediately after the announcement of results Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd. , said “This is the fourth year in a row that Hero Honda has maintained its position as the ‘World No.1' two wheeler company and we credit this feat to the trust bestowed on us by our customers. Our efforts to deliver the best value-for-money products and services to our customers have made this success possible. With enduring support from Honda, we will continue to lead the way and provide the best service to our customers.”

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., also shared his pleasure on the company's performance. He said, “Despite rising input costs right from the beginning of the fiscal year, we have been able to maintain our operating margins and increase sales volume significantly. There is already a strong demand for our products in the market and I am sure the launch of new models in 2005 will further consolidate our market dominance.”

For the calendar year 2004, Hero Honda sold a staggering 25,28,699 motorcycles, retaining its position of ‘World No.1' two-wheeler company for the fourth consecutive year. The sales volume during the year registered a significant jump of 35% as compared with sales of 18,73,622 motorcycles during the year 2003.

On the heels of the company's brilliant financial performance, Hero Honda was recently conferred the honour of the “Best Governed Company” in the private sector by the Institute of Company Secretaries of India.

Hero Honda Cumulative (April '04-January '05) Sales Jump 29 per cent
(Tuesday, February 01, 2005)

Records highest-ever January sales of 2,30,280 motorcycles

Hero Honda, the ‘World No 1' two-wheeler company for the fourth consecutive year, has continued to exhibit a leader's performance in the first month of the New Year. During the month of January 2005, the company sold 2,30,280 motorcycles, the highest-ever in the month, as compared with 1,95,982 motorcycles sold during January 2004. This translates into an increase of 17.5 per cent in sales volume.

The cumulative sales of the company for the period April 2004 - January 2005 has also increased to 21,66,261 motorcycles, a notable jump from 16,73,421 motorcycles during the corresponding period last year. This reflects a growth of 29.4 percent.

Consistent with earlier years, the company announced an Rs 1001 celebration offer for all its models, w.e.f. 14th January 2005. The Celebration is for Hero Honda achieving ‘World No.1' two-wheeler company status, for the fourth year in a row.

One of the proudest moments during the month came with the announcement of Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., being conferred the prestigious Padma Bhushan, a testimony of his vision and leadership.

During the month of January, Hero Honda also took forward its association with cinema, with the sponsorship of the Star Screen Film Awards. Films are one of the most popular forms of entertainment for millions of Indians and would help strengthen the company's bonding with its customers.

Brijmohan Lall , Chairman of Hero Honda, receives the Padma Bhushan from the President A P J Abdul Kalam
(Monday, March 28, 2005 )

Dr. Brijmohan Lall Munjal has been conferred the prestigious Padma Bhushan Award, for his contribution to the Trade and Industry, by the President A P J Abdul Kalam at the investiture ceremony held at the Rashtrapati Bhavan on 28.3.05.

Dr. Munjal is considered to have led Hero Honda from the front to establish it as a ‘World No. 1' two-wheeler company.

A true entrepreneur, he set up Hero Cycles factory in 1956, which engaged in manufacturing complete bicycles and went on to become the world's largest bicycle producer in 1986, a position it has held since then. In 1984 he started Hero Honda, the joint venture of Hero with Honda Motor Co. Japan. The company heralded the two-wheeler revolution in India and became the world's largest two-wheeler company in 2001 and continues to hold that position ever since.

Today more than a crore satisfied Hero Honda customers bear the testimony to Dr. Munjal's philosophy – create a judicious world class blend of performance, quality, cost and service, reinforce it with mutually beneficial relationships and you will be a winner.

Presently, Dr. Munjal is the Chairman, Hero Group which straddles Indian industrial landscape with 20 companies in diverse fields including auto parts, bicycles, motorcycles, education, BPO, IT software etc. He has nurtured the growth of a large number of world-class suppliers and ancillaries. He is an active Rotarian, a Rotary District Governor and a member of Rotary International Committees. He has held important positions on the panel of various prestigious bodies like President of Confederation of Indian Industry (CII), President of Society of Indian Automobile Manufacturers (SIAM).

Dr. Brijmohan Lall Munjal is a great philanthropist. Under his guidance, the Hero Group operates several charitable trusts, schools, hospitals, adult education programs, vocational training for rural women, mobile medical facilities for remote villages etc. He has been long associated with Business Management education in India and is presently Member, Board of Governors, Management Development Institute (MDI) Gurgaon.

He has been conferred with numerous accolades and recognitions including Honorary Membership of Indian Institution of Industrial Engineering Award (1992),The Businessman of the Year (1994) – Business India, National Award for Outstanding Contribution to the Development of Indian Small Scale Industry by President of India (1995), Sir Jehangir Ghandy Medal for Industrial Peace (2000) – XLRI, Entrepreneur of the Year (2001) – Ernst & Young, Entrepreneur of the Year (2002) – Business Standard, Lifetime Achievement Award for Management (2003) – All India Management Association, Degree of “Doctor of Letters” Honoris Causa (2004) – Banaras Hindu University

Hero Honda, A Leader By A Million Ends FY 04 – 05 With 26,21,400 Motorcycles Sold
(Friday, April 01, 2005)

Hero Honda, the ‘World No.1' two-wheeler manufacturer, is cruising ahead in top gear. The company closed the FY 2004-05 with an incredible 26,21,400 motorcycles, an impressive jump of 27 per cent over the previous FY. The company had sold a total of 20,70,157 motorcycles in 2003-04. The year-on-year growth registered by the company is extremely significant considering its extra-ordinarily huge volume base. The lead over the No-2 two wheeler company is now over 1 Million.

During the month of March 2005 the company sold an enormous 2,31,593 units translating into a rise of 21 per cent over the same month last year. (1,92,181 units). Hero Honda sold in excess of 2 lakh plus units during every single month beginning October 2004.

Market Share Now 50%
The company like in the past continues to enjoy a lion's share of the motorcycle market. The company's market share for the period April – February 05 stands at 50% in motorcycles. The company had ended the FY 2003-04 with a 48 % market share in motorcycles. The company's market share in the total two wheeler market for the same period stands at 40%.

Launch of ‘Sarva Guna Sampanna' Super Splendor
March 2005 also saw Hero Honda launch its much-awaited 125cc offering, the ‘Sarva Guna Sampanna' Super Splendor, which has received a phenomenal response from across the country. The bike which comes with Honda's next-generation Quantum Core Engine, promises an unprecedented combination of top-class fuel-efficiency and improved power.

The company also launched a unique marketing promotion across seven key markets to build awareness about the strengths of Super Splendor. Road shows including an abstract virtual reality show and product related audio-visuals offered a first-time experience to interested customers.

Exports Up By 63 %
The company increased its exports by 63 %, selling 64,015 bikes in the FY 04-05.

A Special Honour
The financial year was also marked with one of the highest civilian honours, the Padma Bhushan being awarded to Dr. Brijmohan Lall, Chairman, Hero Group, for his invaluable contribution to trade, industry and philanthropist activities. Dr. Brijmohan Lall is a first generation entrepreneur who through sheer hard work and perseverance has made his mark on the global business environment.

This year also saw the company achieve the landmark of 1 crore customers. It is a true reflection of the trust in the name Hero Honda and special bond which the company enjoys with their customers.

Hero Honda Touches New Heights, Registers Annual Growth Of 27% In Volumes, 26% In Total Turnover
(Tuesday, April 12, 2005)

Consolidating its leadership in the two-wheeler market, Hero Honda Motors Ltd., the World's No. 1 Two-Wheeler Company, sold an unprecedented 26,21,400 motorcycles in the year 2004-05 at a growth of 27%, way above the industry growth of 20%. Hero Honda increased its lead over the nearest competition by over 10 lakh bikes during this year, up from eight lakh last fiscal.

Hero Honda also strengthened its market share at 50%, up from 48% last fiscal, ensuring that every second motorcycle sold in the country during the financial year 2004-05 was a Hero Honda bike. Hero Honda garnered 40% market share in the overall two-wheeler industry.

The company has once again proved to be one of the most investor friendly companies, creating wealth for its legions of shareholders. It announced a dividend of 1000%, i.e. Rs 20/- on each share of face value Rs 2/- which would entail an outgo of Rs 399.38 crore excluding withholding tax.

Announcing the annual financial results at a press conference here today, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said, "The new launches, technological innovation and the productivity agenda have contributed towards our unprecedented growth. This has also been made possible due to the dedication of the entire Hero Honda family including our vendors and suppliers. This success would be incomplete without thanking our partner Honda Motor Co., Ltd., Japan for their unrelenting support."

According to Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., "Every second motorcycle sold during 2004-05 was a Hero Honda. We have demonstrated the resilience and enterprise of a true world leader in the face of severe challenges in the marketplace and rising input costs. For us at Hero Honda, year 2005-06 is again full of innovation and exciting launches, and we will continue to set benchmarks in product quality, market execution and customer satisfaction. We have already increased the capacity in both our plants to more than three million units to meet the rising demand of our customers."

The Operating Margin for the financial year 2004-05 was at 14.50%, as compared to 15.56% last fiscal, a testimony to the company's relentless pursuit of cost rationalization and judicious management of working capital in spite of increase in input cost. Earnings Per Share (EPS) at the end of the year stood at Rs. 40/- EBIDTA margin was 15.69%.

The company also registered a robust performance for the fourth quarter of the FY 2004-05. The motorcycle sales for the period January - March 2005 grew by a remarkable 16 per cent as compared to the corresponding period in the previous FY. The company sold 685,419 motorcycles in the quarter, up from 5,92,718 units sold during January - March 2004.

The Total Turnover of the company for the same period also went up by 15% from Rs 1724 crore in the fiscal 2003-04 to Rs 1976 crore. Profit before tax (PBT) during the quarter was Rs 303 crore as compared to corresponding quarter Rs 311 crore. Profit after tax (PAT) during the quarter was Rs 207 crore during January - March 2005, from Rs 211 crore during the same period last fiscal.

Hero Honda Continues on the Growth Path, Demonstrates Consistent Growth in Q1
(Monday, July 18, 2005 )

Q1 result highlights:

Hero Honda, the ‘World No. 1' motorcycle manufacturer today announced its first quarter results for the FY 2005-06, demonstrating consistent growth quarter over quarter.

The company recorded an increase of 13% in its sales volume during the quarter, as compared with sales during the corresponding quarter in the last FY. The company sold 6,87,567 motorcycles during April-June 2005, as compared with 6,09,123 motorcycles during April-June 2004.

Hero Honda sold over 200,000 units for each of the months in the quarter, having established the benchmark for the industry in the previous FY.

Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2007.63 crore, a significant growth of 15% over Rs 1745.21 crore recorded in the corresponding period last year. Net Sales (Income from Operations) showed a remarkable growth of 14.8 % over the corresponding period, from Rs 1722.28 crore to Rs 1977.06 crore.

Profit After Tax (PAT) increased to Rs 204.45 crore, an impressive growth of 7.6 % over last year's Rs 190.07 crore. The Profit Before Tax went up to Rs 298.12 crore, registering a increase of 3.5% over Rs 288.04 crore recorded in the corresponding period last year.

Operating Margin (EBIDT) for the first quarter saw a marginal decline of 1.8 % i.e 14.8%, as compared with 16.6 % in the corresponding period last year. The reduction in EBIDT margin is very marginal considering the impact of steel price increase in April 2005 and disruption of production due to constraints in supplies of some components during the quarter.

Announcing the results, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, “With the first quarter ending, I feel we have made a good beginning to the current financial year. Our consistent growth performance in the last quarter demonstrates our continued efforts to deliver the best products and service to our customers. We are confident that with the support of our customers and business associates we would be able to continue on the growth path in the coming months as well.”

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, “During the last quarter we focused on consolidating our undisputed leadership in the executive segment, with the launch of Glamour, our new 125 cc offering. The model, which has been launched in only South India so far, has been really appreciated by our customers. We will continue to launch Glamour in the other regions in the coming months.”

“Super Splendor, which was launched in March this year, has also received a very encouraging response from our customers. In the first four months of its launch the company has already sold 150418 units”, he added.

During the first quarter of the FY 2005 – 06 the company also established a landmark figure of over 2 million members for the Hero Honda Passport Programme - its unique CRM initiative, making it Asia's biggest CRM programme.

For further information, please contact:

New Delhi , October 20th, 2005.

Hero Honda, the ‘World No. 1' two-wheeler company, today announced impressive financial results for the second quarter, July - September 2005.

The motorcycle sales for the period July – Sept 2005 grew by 21%, as compared with the corresponding period in the FY 2004-05. The company sold 7,42,425 motorcycles in the quarter, significantly up from 6,14,796 units sold during July – Sept 2004.

The company's Profit After Tax (PAT) during the second quarter of the current FY jumped to Rs 237.92 crore, a growth of 22% over Rs 194.36 crore recorded in the corresponding period during the year 2004-05. The Profit Before Tax (PBT) went up to Rs 350.79 crore, registering an impressive increase of 19% over Rs 295.45 crore registered during same period in the previous financial year.

Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2209 crore, a growth of 23% over Rs 1798 crore recorded in the corresponding period in the previous year.

The operating margin (EBIDTA) stood at 15.40%, in spite of increase in input costs and additional taxes.

For the period April - September 2005, Hero Honda continued its upswing, in terms of volume sales, recording impressive growth month over month. The company achieved a total volume sale of 14,29,992 motorcycles during the period, as compared with 12,23,919 motorcycles during the corresponding period in the previous financial year. This translates into a significant jump of 17% over the first half of FY 2004.

The Total Turnover of the company for the same period also increased by 19 % from Rs 3543 crore to Rs 4217 crore. While the Profit After Tax during the first half this year registered a jump of 15%, from Rs 384.43 crore during the corresponding period last year, to Rs 442.37 crore this year; the Profit Before Tax showed an impressive upward trend, growing 11 % from Rs 583.49 crore in April– Sept 2004 to Rs 649.84 crore in the corresponding period this financial year.

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said , “Our performance in the second quarter this year has been very encouraging. We have continued to grow consistently, in the last six months, with the continued support of our business partners and customers and I convey my gratitude to them. I would also like to thank our partner Honda Motor Co. Ltd., Japan for their continued technological support for all our new product introductions.”

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said , “In the last six months, we have focused on consolidating our position in the 100 cc plus segment, with both our new launches – Super Splendor and Glamour, receiving a tremendous response from customers. The success of these models is purely the result of our customer focused approach. Recently, we have also introduced Achiever in the 150cc segment, which we are confident will strengthen our presence in the premium segment. Additionally, now with our entry into the scooter segment with ‘Pleasure', we are looking at offering our services to a much wider customer-base.”

Commenting on the company's financial performance during the past quarter, he added, “With increasing volumes and continuing cost rationalization measures, we have been able to demonstrate an impressive performance in the past quarter. With the support of our customers, I am confident that we will be able to put forth a similar performance in the months to come.”

The company has announced a festive season celebration offer of Rs.1001/- on all its models.

For further information, please contact:
Bharatendu Kabi, Senior Manager, Corporate Communication, Hero Honda Motors Ltd.
Tel: 011 – 26146768 (D)
M: 9811772283
or
Sheetal Sadhu Saxena/Poonam Tibrewal, Corporate Voice | Weber Shandwick,
Tel: 011 - 26936834-5
M: 9811205585/ 98110 29543