• Total turnover (Net sales & Other Operating income) Rs 2881.27 crores, growth of 4.77 per cent
• Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent
• EBIDTA margin for the quarter 14.47 per cent, up from 13.58 per cent in previous quarter (July-September’08)

Achievements:

• Crossed the landmark retail sales of more than six lakh two-wheelers in a month in October
• Retail sales during the quarter grew by 3.5 per cent compared to corresponding quarter in FY ’07-08
• Growth of 11 per cent in two-wheelers despatch sales in the first nine months (April-December) this financial year
• Over 56 per cent share in domestic motorcycle market

New Launches:

• Launched seven new models this quarter - New CD Deluxe, New Passion Pro, Splendor NXG, New Pleasure, New Glamour, New Glamour FI and the all new CBZ X-treme.

Hero Honda Motors Ltd (HHML), the world's largest two-wheeler manufacturer, today carried its growth story forward in the third quarter (October-December) of the financial year 2008-09.

Reflecting its robust retail sales during the quarter, when the company sold a record six lakh two-wheelers during the month of October, Hero Honda reported Rs 300.42 crores of net profit after tax for the third quarter. The company’s profit after tax in the corresponding period last fiscal (October to December, 2007-08) stood at Rs 275.01 crores.

Even as the industry continues to reel under high interest rates and an overall credit squeeze, Hero Honda’s total turnover (Net sales & Other Operating income) grew to Rs 2881.27 crores, a growth of 4.77.per cent over Rs 2750.20 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 14.47 per cent in the quarter. The EBIDTA margin in the previous quarter (July-September '08) was 13.58. per cent.

During the first nine months of this financial year (April-December’08), Hero Honda’s total turnover (Net sales & Other Operating income) grew to Rs 8934.36 crores, a growth of 18.1.per cent over Rs 7564.65 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.44 per cent in the first nine months. The EBIDTA margin in the corresponding period (April– December’07) last year was 12.68 per cent.

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “Our performance is a tribute to the way we have positioned the company over the past several years. The results reinforce our confidence in Hero Honda’s ability to perform well under adverse market conditions. We wish to thank all our stakeholders – customers, associates, dealer friends, ancillaries and also our joint venture partners Honda Motors Co – for their continuous support and faith in us."

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said "Our third quarter results reflect Hero Honda’s remarkable resilience in the current deteriorating business environment and also illustrate the benefits of the strategic initiatives that we have undertaken over the past couple of years. We have been able to deliver another solid quarter of strong earnings and improved operating margins.”

“We are celebrating 25 years of consistent growth and business success, driven by innovation and operational excellence. Looking forward, we will remain focused on further strengthening our industry leadership, while continuing to improve efficiencies in our business. We will continue to innovate in all areas of our business - technologically-superior products, network expansion, brand building, manufacturing excellence and financial management," he added.

Softening of commodity prices, cost rationalization across the board, strengthening of the premium product portfolio and a growing rural market have played key role in the company’s performance.

With over 56 per cent market-share, the company continues to enjoy the number 1 position and is consistently growing its share in the domestic motorcycle market. Hero Honda launched seven new models this quarter – the new CBZ X-treme in the premium segment, "Passion Pro Power Start”, new Glamour FI, new Glamour and a self–start version of Splendor NXG in the deluxe segment, new CD Deluxe in the entry segment and the refreshed Pleasure in the scooter segment. The scooter ‘Pleasure’ has also been growing strongly, with more than 12,000 units being sold every month on an average.

Hero Honda’s pioneering efforts in the two-wheeler industry have also been acknowledged by various entities. Mr. Pawan Munjal was recently awarded the “CNBC TV18 Overdrive Man of the Year Award”. The company also recently won three coveted awards - "The Most preferred Brand of two-wheelers" award at the CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit Business Leadership Award” for two-wheelers.