Hero Honda Q4 net profit falls 16.2%

The world's largest two wheeler manufacturer, Hero Honda, on Wednesday reported a 16.2% decline in its net profit for January-March quarter of 2010-11 at ₹502 crore, as rising cost of raw materials undermined its profitability even as its turnover during the period went up by 31.2%.

Hero Honda's expenditure on procuring raw materials during the period went up by 41.2% to ₹3,925.1 crore. For the full financial year 2010-11, the company's net profit plunged by 14% to ₹1,927.9 crore against ₹2,231.8 crore achieved a year earlier.

The firm's turnover during the period went up by 23% to ₹20,662.4 crore on the back of a 17% increase in sales of its two wheelers.