Hero Honda defies industry trend to post 50 percent jump in net profit in Q2 FY09

Despite credit squeeze and slowdown of demand, the company's cumulative sales for the September quarter of FY09 stood at 9,72,095 units - a growth of 28.5 percent over the corresponding quarter of last year (FY08).

"We are happy with our financial performance. It gives immense joy to see this kind of results in the 25th year of our company. I wish to thank all our stakeholders – customers, associates, dealer friends, ancillaries and also our joint venture partners Honda Motors Co – for their continuous support," said Dr. Brij Mohan Lall, chairman, Hero Honda Motors Ltd.

According to Pawan Munjal, managing director and CEO, Hero Honda Motors Ltd, despite volatile and competitive environment, the company's "top line continues to outpace the industry growth."

"The company's topline as well as bottomline have seen a healthy growth mainly on account of growth in volume and the cost discipline within the company during this fiscal, besides our focus on customers' need and expansion of our dealer network," Munjal said.

"Our market share is at an all time high, and the financial balance sheet is a delight – all the factors which form the hallmark of a resilient company with cutting-edge management. We will continue to keep innovating – in bringing in technologically-superior products, in our network expansion, in brand building, in our financial management, and in our communication," he said.

However, the company was slightly conservative in its outlook. "Going forward, we will have to keep a close watch on the commodity prices movement, and other factors such as inflation, interest rate scenario and availability of retail finance. These factors will play a crucial role in the industry growth in the subsequent quarters," Pawan Munjal said.