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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4210)	5/5/1999 2:25:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

A killer stock- Hero Honda (Earnings expected to rise 65%) herogroup.com Hero Honda's net profit likely to increase by 65% to Rs 120 cr PRESS TRUST OF INDIA -------------------------------------------------------------------------------- financialexpress.com New Delhi, May 4: Net profit of Hero Honda Motors Ltd (HHML) is likely to go up by over 65 per cent to Rs 120 crore during the just ended fiscal year as compared to Rs 77 crore net profit in the previous year. The leading four-stroke two-wheeler manufacturer of the country is expected to record Rs 170 crore profit before tax (PBT) in 1998-99 as its turnover is likely to be Rs 1,500 crore during the year, top company officials said. Though the results are yet to be announced officially by the company, it is buoyant by the sales and financial performance and planning to invest heavily in new ventures in years to come. Anticipating the great potential of the Indian two-wheeler's market, the company, a 50:50 joint between Honda Motor Company of Japan and India's Hero group, has targeted to sell about 6,50,000 vehicles in 1999-2000. During the year 1998-99, HHML sold 5,30,607 vehicles and exported 11,376 units as against 407,563 motor cycles sold and 18,402 vehicles exported during the previousyear. Hero Honda, which recently launched a powerful 156cc motorcycle 'cbz' in the domestic market, is planning to launch two new models for providing alternative and choice to its customer. The new models, expected to be in the range between 100cc and 156cc engine capacity segment, are being designed and developed by Honda Motor Company of Japan. It has already started work on the project and one of the new models is expected to be rolled out by end of the current financial year, sources said. The company plans to retain its existing suceesful models such as Splender, CD-100 and CD-100ss and the new models would be placed along with the existing ones as there is no plan to phase out any of the running models. Hero Honda, which is one of the sponsors of the World Cup cricket '99, is also eying the rural market in a big way as it feels that there exists a tremendous scope in the coming years. It plans to position its 100cc bikes more prominantly in the rural market and is working towards providinga complete range of slightly more powerful motorcycles for urban buyers.