Hero Motocorp net rises 43% to Rs 613 crore

Hero MotoCorp has registered a net profit growth of 43 per cent at Rs 613 crore for the reporting quarter on the back of better growth in income from operations, the country’s biggest two-wheeler maker said on Thursday.

The Delhi-based company (formerly Hero Honda Motors), had last year posted a Rs 429-crore net profit during the same quarter. That was when it had set aside a sum of Rs 80 crore in lieu of probable claims arising out of litigation, which was not there this year.

The net profit was largely in line with market analysts tracking the company who expected it to be in the region of Rs 610-620 crore. Its stock closed 2.35 per cent higher at Rs 1900.75 as against its yesterday’s close of Rs 1,857.15.

The company’s net sales grew by 17 per cent to Rs 5,983 crore during the quarter as against Rs 5,118 crore posted in the corresponding quarter last year. The absolute sales grew 11.3 per cent to 1,589,286 units as compared to 1,428,030 units. The company said it was now on course to meet its target of selling six million two-wheelers in the current financial year.