Hero MotoCorp has posted it’s highest ever profits for a quarter on a 43% growth to INR 613 crore. The company net sales in the period went up 17% to INR 5,984 crore, even as two wheeler sales for the three month period reached record numbers at 1.589 million units. In every month across the quarter, it sold over half a million vehicles.

The two wheeler maker’s EBITDA margin in the third quarter stood 15.6%. Mr Pawan Munjal MD & Chief Executive Officer of Hero MotoCorp said that “We are well in line to meet our guidance for over six million unit sales in the fiscal 2012.”

He added that “In FY12 the industry has been facing constraints of rising fuel prices, high interest rates and sharp rupee depreciation, leading to increased input costs impacting the margin. We have also seen a softening in commodity prices of late, which has, however, been off set by the rupee depreciation. While we expect market demand for two wheelers to remain stable, a lot will depend on the overall economic and political scenario going forward.”

The profits have gone up even after the company reportedly paid about INR 180 crore to erstwhile Japanese partner Honda as royalty in the quarter. Royalties are expected to go up with the Yen appreciating around 20% in the period.

Hero MotoCorp plans to launch three new models in the next few months the 110cc Passion X Pro, a 110cc masculine scooter, Maestro, and a 125cc bike, Ignitor. It is also enhancing its research and development capabilities, where it is currently developing this hybrid technology. The company has also been in discussion with international design houses and technology suppliers for collaboration to develop new models.

(Sourced from BL)