Hero Honda, the largest and the biggest two-wheeler in the world with its punch line ‘Desh ki Dhadkan’ has been one of the best performers in the Stock Market for a while. However, Hero Honda Q2 results have been shockingly disappointing as the company saw its profits erode by 15%
Hero Honda Q2 2010 Highlights
- 15% slide in net profit
- Profit for the quarter ended 30 September at Rs 507 crore
- Increase in net sales by 12% at Rs 4552 crore
However, the decrease in profits does not really tell the complete story and it might be too early to call Hero Honda’s Q2 results a failure.
The company sold record number of vehicles this quarter and sales have actually increased over the quarter. The slide in profits is primarily attributed to the increase in costs owing to higher spending on raw materials. Hero Honda witnessed significant increase in raw material spending for steel, rubber etc.