Auto exports slip into reverse gear

The Tata firm, Telco’s performance was dismal not only on the domestic front but in exports too. The exports of HCVs were 2678 units in the fiscal 1998 as against the previous year where it managed to export 5,216 units. However, the company exported 6,622 LCVs, marginally above previous fiscal’s figure of 6,146 units.

In the two-wheeler segment also exports moved into low gear but performed better than the four wheelers. Barring LML which exported more scooters than previous year, other manufacturers were lagged behind. LML exported 10,441 scooters as compared to 5,341 units exported last year. Market leader, Bajaj Auto’s exports fell from 10,589 scooters to 8,979 units.

In the motor cycle segment, Hero Honda exported more at 18,402 units as against last year’s15,060. Bajaj Auto exports were down at 11,048 in the fiscal ended March 1998 as compared to 12,600 units exported in the previous fiscal. The only export growth recorded was in mopeds where auto makers exported more than in the previous year. Majestic Auto exported the maximum at 31,523 mopeds while Kinetic Engineering exported about 5,235 mopeds. Overall, the two-wheeler industry exported about 1,25,504 units as compared to 1,24,728 units exported in fiscal 1997.

Hero Honda beats the trend, posts 52% net

MUMBAI: Hero Honda Motors, the country’s leading motorcycle manufacturer, has registered an impressive growth during the year ended March 1998. It has posted a turnover of Rs 1160.72 crore compared to Rs 782.83 crore in the previous year — an increase of 48 per cent. The company earned a gross profit of Rs 128.33 crore (Rs 78.34 crore) and profit before tax of Rs 109.54 crore as against Rs 65.11 crore the previous year, a growth of more than 68 per cent.

The net profit after tax hasgrown by over 52 per cent from Rs 50.36 crore to Rs 76.60 crore. The earings per share (EPS) have also shown an impressive growth of more than 52 per cent from Rs 25.22 per share to Rs 38.36 per share. The directors have recommended a total dividend of 40 per cent for the year, of which 16 per cent has been paid as interim dividend. The company sold 407,546 motorcycles during the year against 268,931 in the previous year, a growth of more than 51.5 per cent. Hero Honda is the only motorcycle manufacturer that has sold more than 400,000 motorcycles in a financial year.

Announcing the results at the board meeting held today, Brijmohan Lall Munjal, CMD, said, "The company did not resort to the increase in sales price to increase profits but improved its performance by managing its resources better, cutting costs and increasing productivity.” Honda has acquired around 36 per cent market share in the motorcylces segment.