The Hindu : Business : Hero Honda pays Rs. 20 per share

Online edition of India's National Newspaper
Wednesday, Apr 13, 2005

Business

Business

Hero Honda pays Rs. 20 per share

By Our Special Correspondent

NEW DELHI, APRIL 12. Despite pressure on margins from increasing input costs and frequent discounts in the face of rising competition, Hero Honda Motors, managed to register a 11 per cent increase in net profit at Rs. 810 crores for the fiscal ending March 31, 2005 against Rs. 728 crores in 2003-04 and it plans to enter the scooter market sometime next year.

While the company is trying to sustain and improve its efficiency to post better results, Hero Honda Motors will launch its first two-wheeler scooters in 2006, the Managing Director, Pawan Kant Munjal, announced while releasing the company's results for 2004-05 at a media meet today.

The operating margins fell more than one percentage point to 14.50 per cent from 15.56 per cent in the previous fiscal.

Total turnover for the company, however, saw a 26 per cent jump to Rs. 7,562.68 crores from Rs. 5,997.47 crores.

Bike sales rose by 27 per cent to 26.21 lakh units from 20.70 lakh units.

Even in the face of subdued profitability, the company continued with its high dividend payout, declaring a 1,000 per cent dividend. This translates into a payout of Rs. 20 on each share of face value Rs. 2 and entails an outgo of around Rs. 450 crores.

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