Beating all estimates of industry analysts, the two-wheeler maker Hero MotoCorp has registered a considerably high result for the quarter ending in September 2011. The operating profit margin for the firm was 15.76% in the second quarter of this financial year.
The net sales of the firm increased 28.1% year on year to 5,829.3 crore during the quarter, slightly lower as compared to the growth registered in the Q1. It has been estimated that an improvement of 6.6% year on year in average realizations per vehicle helping the company to register a net profit surge of 19.4% year on year in the second quarter of FY11.
The sales of the firm in the 125cc segment, which has been considered a segment of higher margins, stood at 6 percent year on year during the quarter. Meanwhile the company has launched its first ever Hero brand bike – the 150cc Hero Impulse – in the Indian market, priced at Rs 66.8 lakh (ex showroom Delhi). The bike is seen as an attempt by the Hero MotoCorp to improve its proportions in the Indian market.
On the other hand, the nearest rival Bajaj Auto is believed to have enjoyed higher margins as compared to Hero MotoCorp, though the firm hasn’t declared its quarterly results.
