Hero Honda reports impressive topline growth in FY 2006-07

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Hero Honda reports impressive topline growth in FY 2006-07

Hero Honda reports impressive topline growth in FY 2006-07, Zips ahead with 33,36,756 unit sales

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Hero Honda Motors Ltd . (HHML), today declared its annual results for the financial year (FY) 2006-07 with an impressive cumulative tally of 33,36,756 units, as compared to 30,00,751 units in the previous fiscal (2005-06). This accounts for a Y-o-Y growth of about 11.2 per cent. The Company has steadily improved its market share over the year, exiting with 49.2 per cent share in motorcycles for the month of March 2007.

The Company launched as many as eight new products including variants during the financial year 2006-07 and invested significantly in brand building and supporting these launches. This, coupled with consistently rising input material costs of steel, aluminum, nickel etc, has meant a lower EBIDTA margin of 11.85%. The company posted a net profit (PAT) of Rs. 857.89 crores, as compared to Rs. 971.34 crores in the corresponding previous fiscal.

Financial Results for FY'06-07

Total sales for FY06-07 33,36,756 units, growth of 11.2 %

·      Total turnover growth of 13.75%

• Net profit at Rs. 857.89 crores
• Dividend pay out of 850%
• EBIDTA margin for the year 11.85%
• EPS of Rs. 42.96

 Financial Results for Q4, FY'06-07

• Total sales for Q4 stands at 8,55,984 units, growth of 10.81%
• Net profit at Rs 195 crores
• Total turnover growth by 16.75%
• EBIDTA margin for the quarter 10.18%

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd., said "We are pleased with our overall performance for FY 2006-07. In terms of volume sales, we consolidated our market leadership. This is evidenced in the last quarter of 2006-07 when we crossed over 49 per cent market share in motorcycles, and indeed in April 2007, when we crossed 50 per cent. This strategy has worked, and so we will continue to focus on topline growth and market share. However, as we have always maintained, our margins this year will continue to be under pressure due to inflation in material costs, coupled with spends on marketing initiatives for brand building."

Highlights for the Financial Year 2006-07

• Impressive growth driven by multi-pronged strategy, with eight new product launches across segments, including CBZ X-treme, New Karizma, Glamour FI, Glamour with alloy wheels, CD Deluxe, CD Dawn, Passion Plus Limited Edition and the New Achiever with Alloy Wheels
• Redefined industry benchmarks in sales; posted world record despatch sales (3,63,480) and retail sales (531,716) in October 06
• Retains the coveted position of being the World's No.1 two-wheeler company in unit sales for six years in a row
• Adjudged 7th Top Indian Company by Wall Street  Journal Asia
• Ranked No.1 in Customer satisfaction index by CSMM-Business World Loyalty Report
• Voted the TNS "Most Trusted Company" in 2006
• CBZ X-treme awarded "Bike of the Year" by Overdrive Magazine, BS Motoring Magazine and NDTV Car India Bike India Awards; Glamour FI Awarded "Bike Technology of the Year" by NDTV Profit Car India Bike India, and "Auto Tech of the Year" Award by Overdrive magazine

Sourced From: Corporate Voice|Weber Shandwick