Hero Honda net jumps 83 percent

Two-wheeler major Hero Honda Motors Wednesday reported 83 percent jump in profits to Rs.500 crore ($103 million) for the quarter ended June 30 as compared to Rs.272.8 crore in the like period last year.

The total income surged 33.7 percent to Rs.3,864 crore from Rs.2,890 crore, the company said in a regulatory statement.

Hero Honda's total turnover grew to Rs.3,822.4 crore in the quarter from Rs.2,851 crore a year ago, reporting a growth of 34 percent.

The company sold a million vehicles for the first time in a quarter, taking the sales volume up by 25 percent, while the industry grew by 12 percent, the statement said.

"We are delighted to report our best quarter ever, with the highest revenue and earnings in Hero Honda's history," said Pawan Munjal, chief executive and managing director of Hero Honda Motors.

With over 59 percent market share in the domestic motorcycle market and with sales of over a million units in the quarter, the robust topline growth has largely contributed to the strong bottomline performance, Munjal added.

The company has also signed up with the International Hockey Federation (IHF) to be the title sponsor of men's hockey World Cup in March 2010, to be held in Delhi.