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Hero MotoCorp's second quarter net profit down 27 percent

Posted on Oct 23, 06:48PM | IANS

Two-wheeler major Hero MotoCorp Tuesday reported a 27.01 percent decline in net profit for the second quarter of the current fiscal which stood at Rs.440.58 crore.

The company had reported a net profit of Rs.603.62 crore in the corresponding period of the last fiscal.

The company sold 13.69 percent less two-wheelers in the second quarter which stood at 13,32,805 units from 15,44,315 units sold in the corresponding quarter of 2011-12.

"Two-wheeler market has been adversely impacted due to the overall slowdown since the beginning of this quarter," said Pawan Munjal, managing director and chief executive, Hero MotoCorp, in a statement.

"Sensing the slowdown, we led the way in adjusting our production plans in August and September."

For the fiscal to date, the company managed to sell close to three million two-wheelers.

The company's net total income in the period under review stood at Rs.5,187.46 crore, down 10.96 percent from Rs.5,826.15 crore in the second quarter of 2011-12.

The company further said that it is encouraged by a renewal in demand in the festive season, as it could sell over two lakh units during the the Navratra festivities.

The company's performance was also hit for the second half of the fiscal with net profit coming down 9.08 percent at Rs.1,056.04 crore from Rs.1,161.51 crore during the corresponding period of last fiscal.

The company's net total income was marginally down by 0.63 percent at Rs.11,434.74 crore from Rs.11,507.88 crore during the first half of 2011-12.

The company sold 3.21 percent less two-wheelers in the first half of the current fiscal. It sold 2,975,097 units from 3,073,892 units sold in the like period of last year.

The company added that it will enter new markets like Nigeria, Kenya and Guatemala in the current fiscal.

"Our global business plan will also take shape this fiscal, with the launch of Hero products in new international markets such as Nigeria, Kenya and Guatemala."

The company last month launched its products in Sri Lanka and Nepal.