Hero Motocorp Q2 net sales up 28% to Rs 5784 cr

By Sonia Shenoy, CNBC-TV18

Country's largest two-wheeler maker Hero Motocorp has reported better-than-expected rise of 19.4% YoY in net profit of Rs 604 crore in the quarter ended September 2011. The company had posted a profit of Rs 506 crore in the corresponding quarter of last fiscal. Net sales jumped 28% to Rs 5,784 crore from Rs 4,511 crore year-on-year. Raw material cost in the second quarter stood at Rs 4,264 crore. Depreciation cost increased 361% to Rs 280 crore from Rs 60.7 crore and total expenses moved up 29.6% to Rs 5,190 crore from Rs 4,005 crore during the same period. Hero Motocorp sold 1.54 million 2-wheelers in the July-September quarter as against 1.29 million in same quarter the previous year. In the first half of financial year 2011-12, the company sold more than 3 million 2-wheelers. EBITDA margin in the second quarter was at 15.76%. The company says, high inflation and fuel costs may impact consumer spending.