New Delhi: Country's largest two-wheeler maker Hero MotoCorp on Tuesday posted 11.11 percent rise in its net profit at Rs 582.98 crore for the quarter ended December 31, 2014.
The company had a profit of Rs 524.66 crore during the same period of previous fiscal.
Net sales of the company, however, declined marginally to Rs 6,792.51 crore during the October-December period, as against Rs 6,845.91 crore during the same period of previous fiscal, Hero MotoCorp Ltd said in a statement.
During the quarter, the company's total sales stood at 16,48,548 units.
Commenting on the results, Hero MotoCorp Vice Chairman, Chief Executive Officer & Managing Director Pawan Munjal said: "We continue to make investments as we pass through a phase of global expansion, capacity enhancement and brand building and these added expenses have impacted our margins in the third quarter."
He added that the company believes that these are investments which will yield the desired results in the long term.
"Going forward, we remain cautiously optimistic about the business climate. With crude prices hovering below the USD 50 mark, and commodity prices continuing to remain soft, a lot will also depend on the much-awaited budget to be presented by the central government later this month," Munjal said.
While sentiments are already high with the central government expected to revive the economy, the other factors such as interest rates, retail inflation and the likely changes in global economy will also play a role in determining the industry growth in the coming quarters, he added.
As part of the global expansion, Hero made its debut in Colombia during the quarter while it also roped in Tiger Woods as its global corporate partner to intensify brand building initiatives in global markets, Munjal said.
Hero MotoCorp shares closed at Rs 2,812.35 apiece on the BSE, down 0.78 percent from previous close.
