After making new benchmarks in the Indian two-wheeler market, it is perhaps the time for some correction at the world's largest producer of two-wheelers, Hero Honda.
Notably, the company has recently reported its financial results wherein its net profit was down 1.6% at Rs 492 crore versus Rs 500 crore, year-on-year, YoY.
However, the two-wheeler maker took no time no mention that its net sales were up 11.91% at Rs 4,265 crore versus Rs 3,811 crore, YoY. While the EBITDA margin stood at 14%, the company’s raw material cost was up at Rs
3,084 crore versus Rs 2,577 crore, year-on-year, YoY.
The company said in a statement that it could have done better but as it is dealing with component crunch at the moment, scaling up output at existing units to meet demand is really a tough task. It is to be mentioned here that the market leader in passenger cars, Maruti Suzuki also posted a fall in its profits.
Both Hero Honda and Maruti Suzuki work in alliance with a Japanese partner. The rising raw materials costs have been a concern for almost all the auto majors in the Indian market.