The net profit stood at Rs 36.15 crore and turnover at Rs 539.79 crore in the corresponding period of the previous year. The profit before tax for the six-month period stood at Rs 73.46 crore as against Rs 52.64 crore in the corresponding period of the previous fiscal.

The company sold 2,46,538 units in the first half this year as against 1,88,775 motor cycles in the corresponding period of the previous year.

It did not announce an interim dividend for the period.

The company is planning to launch five new models over the next three years.

Speaking at a press conference here on Friday, the company's director Pawan Kant Munjal said the company is launching a 150cc motorcycle in April 1999, two new models each in 2000 and 2001.

The first model would be unveiled at the forthcoming India EngineeringTrade Fair (IETF) next year.

With these models, the company expects to cross the one million mark in sales over the next four years.

Hero Honda had captured a market share of 38 per cent in the first six months and is targeting a sale of 530,000 units by the year-end with a turnover of Rs 1,500 crore. The net profit will be around Rs 105 crore for 1998-99.

Hero Honda has dropped plans to launch scooters for now. "Our core strength is motorcycles and we intend to remain in this segment for the time being. We have no plans now to get into the scooter segment," Munjal said.

The company will invest Rs 300 crore over the next four years for expanding capacities and introducing new models.

"We have already invested Rs 100 crore for developing new models and expanding capacities in 1998-99. Another Rs 300 crore would be put in over the next four years. With these investments, the company intends to surpass the one million units sales mark," Munjal said.

The company will also increase exports to othercountries, besides Latin America next year.

Numero uno manufacturer:

Hero Honda will be the single largest manufacturer of motorcycles outside Japan by the end of this fiscal, with sales crossing the five-lakh mark, sources said. The company sold 407,564 units for the year-ended March 31, 1998.

India and China are set to become the most important markets for the Japanese major in the next few years. "Honda Motor Company will focus on these two major markets in future", and will soon take a decision in the manner it wishes to launch scooters, sources said.