HERO HONDA = RESULTS = FOR Q 3 FT 2011 = QTR ENDING DECEMBER, 2010 = SALES UP 34.18% = PROFIT DOWN 19.93%

HERO HONDA

RESULTS FOR Q3 FY 2011

Q/E DECEMBER 2010

HERO HONDA  has reported good increase in Sales but decrease in Profits for the third quarter ending December,2010.

Net Sales is Rs.5118 cr – up by 13.45% from Q2 FY11; and by 34.18% from Q3 FY 2010.

During the same period, Raw Materials cost has increased to Rs.3739.49 cr compared to Rs.3385.74 Cr in Q2 FY 11 and Rs.2605.14 cr in Q3 FY 2010.

Total Expenditure has therefore increased to Rs.4641 cr – up by 15.89% from Q2 FY 11 and by 44.45% from Q3 FY 2010.

There is also an Exceptional Items expenditure Of Rs.79.84 Cr in the quarter.

Consequently, Net Profit has dipped to Rs.429 Cr, a reduction of 15.15% from Q2 FY 11, and a reduction of 19.93% from Q3 FY 2010.

On a Face Value of Rs.2, the Basic EPS  has come down to Rs.21.48 from Rs.25.32 in Q2 FY 11 and Rs.26.83 in Q3 FY 10. It is still one of the most profitable companies, though the Profit is reduced due to increased costs.

Its improvement in future profitability will therefore depend on its ability to pass on the increased costs to the customers.

RESULTS TABLE :

HERO HONDA	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Net Sales	511819	451129	426461	409261	381442
DIF %1	5118	13.45	20.02	25.06	34.18
Other Operating Income	4347	4066	3200	2971	1261
Increase/decrease in SIT/WIP	7537	-7572	-2545	-1098	947
Raw Materials	373949	338574	308481	277941	260514
Employees Cost	15608	14982	14501	14597	13713
Depreciation	5596	6075	4828	4866	4689
Other Expenditure	61414	48417	48970	49618	41437
Total Expenditure	464104	400476	374235	345924	321300
DIF %2	4641	15.89	24.01	34.16	44.45
Profit from Operations	52062	54719	55426	66308	61403
dif %3	521	-4.86	-6.07	-21.48	-15.21
Other Income5	6203	7835	5342	6949	5495
Profit befor I & E I	58265	62554	60768	73257	66898
Interest	-522	-207	-266	-447	-459
Profit after I BB EI	58787	62761	61034	73704	67357
Exceptional Items	7984	-	-	-	-
Profit before tax	50803	62761	61034	73704	67357
Tax expense	7903	12201	11865	13823	13780
Net Profit after tax	42900	50560	49169	59881	53577
Net Profit	42900	50560	49169	59881	53577
DIF %4	429	-15.15	-12.75	-28.36	-19.93
Dividend (%)	-	-	-	1500	-
Face Value (In Rs	2	2	2	2	2
Paid Up Equity Share Capital	3994	3994	3994	3994	3994
Basic EPS	21.48	25.32	24.62	29.99	26.83
Public holding (%)	47.79	47.79	47.79	45.04	45.04

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