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Consumer Durables

Hero MotoCorp Ltd.

  • 3,265.00 INR
  • -21.10
  • -0.64%
  • India
    Aug 16, 2018
  • Ticker
    BOM(500182)
  • Prev. close
    3,286.10
  • Market cap (INR)
    656,271.81M
  • Market cap (USD)
    9,335.80M
  • Shares
    199.71M

Company Background

Hero MotoCorp, India's largest motorcycle maker, is a core unit of midsize conglomerate Hero Group.

The company's history is closely tied to Japan's Honda Motor. Hero Group, which had been making bicycles, entered the motorcycle business in 1984 by establishing a joint venture called Hero Honda. Small motorbikes with 100cc to 150cc engines propelled the partnership into the top spot in the Indian market.

Hero, which sought to expand abroad, had a falling-out with Honda over management policy, leading to the end of the partnership in 2011. The company's name was changed to Hero MotoCorp.

In 2012, Hero MotoCorp partnered with a U.S. motorcycle maker, Erik Buell, seeing a chance for technical synergies. The Indian company has also built up its sales network in both urban and rural areas, making it a formidable competitor to Honda.

Nearly 40% of the company's outstanding shares are held by the founding Munjal family. Brijmohan Lall Munjal, who heads Hero Group, serves as chairman of Hero MotoCorp. His son, Pawan Munjal, is CEO of the motorcycle business and is accelerating overseas expansion, including in Africa and South America.

Business Summary

Hero MotoCorp Ltd. engages in the manufacture of two wheeler. Its products include Karizma ZMR, Xtreme Sports, Achiever 150, New Glamour, Super Splendor, and Passion X Pro. It operates through the Domestic and Overseas segments. The company was founded by Brijmohan Lall Munjal on January 19, 1984 and is headquartered in New Delhi, India.

Financial Highlights

Mar 2018 INRUSD
Revenue318,804.50M4,945.30M
Gross Profit78,235.80M1,213.59M
Operating income42,737M662.93M
Income before tax52,424.40M813.20M
Net income37,204M577.10M
EBITDA48,486.80M752.12M
Diluted EPS186.292.88
Dividends Per Share951.47
Total Assets189,323.20M2,902.76M
Total liabilities68,676.50M1,052.97M
Total equity119,714.60M1,835.50M
Operating cash flow42,117.80M653.33M
Currency in INRCurrency in USD

Historical Data

 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 252,458.60M 274,707.30M 282,216.50M 282,966.80M 318,804.50M
Gross Profit 46,875.20M 57,423M 70,776.70M 73,800.70M 78,235.80M
Operating income 24,166.40M 29,244.30M 40,471.90M 41,742.70M 42,737M
Income before tax 28,641M 32,919.60M 43,526.70M 48,304.80M 52,424.40M
Net income 21,026.60M 23,647M 31,419.80M 35,842.70M 37,204M
EBITDA 35,240.10M 34,648.80M 44,904.40M 46,765.20M 48,486.80M
Diluted EPS 105.30 118.42 157.34 179.49 186.29
Dividends Per Share 65 60 72 85 95
Total Assets 101,263.80M 106,606.60M 129,542.90M 153,849.50M 189,323.20M
Total liabilities 45,028.90M 41,021.20M 40,655.50M 50,020.60M 68,676.50M
Total equity 56,226.40M 65,400M 88,341.10M 103,155.10M 119,714.60M
Operating cash flow 30,938M 23,058.60M 38,791.20M 41,752.40M 42,117.80M
 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 4,177.40M 4,492.83M 4,310.56M 4,219.79M 4,945.30M
Gross Profit 775.63M 939.15M 1,081.04M 1,100.56M 1,213.59M
Operating income 399.87M 478.28M 618.16M 622.49M 662.93M
Income before tax 473.92M 538.39M 664.82M 720.35M 813.20M
Net income 347.92M 386.74M 479.90M 534.51M 577.10M
EBITDA 583.11M 566.68M 685.86M 697.39M 752.12M
Diluted EPS 1.74 1.93 2.40 2.67 2.88
Dividends Per Share 1.07 0.98 1.09 1.26 1.47
Total Assets 1,695.57M 1,703.49M 1,956.17M 2,369.28M 2,902.76M
Total liabilities 753.96M 655.48M 613.92M 770.31M 1,052.97M
Total equity 941.46M 1,045.04M 1,334.00M 1,588.59M 1,835.50M
Operating cash flow 511.92M 377.12M 592.49M 622.63M 653.33M

Valuation Measures

Mar 2018
PER19.03
ROA21.68%
ROE33.38%
Operating margin13.40%
Profit margin11.66%

Key executives

  • Chairman, Chief Executive Officer & MD: Pawan Kant Munjal
  • Chief Financial Officer: Niranjan Gupta
  • Chief Information & Human Resources Officer: Vijay Sethi
  • Chief Technology Officer: Markus Braunsperger
  • VP-Strategic Sourcing & Supply Chain Management: Neeraj Mathur

Shareholders

  • Bahadur Chand Investments Pvt Ltd. (20.0%)
  • MUNJAL PAWAN KANT (14.0%)
  • Life Insurance Corp. of India (6.3%)
  • OppenheimerFunds, Inc. (3.8%)
  • Lazard Asset Management LLC (2.3%)
  • Templeton Global Advisors Ltd. (1.9%)
  • Aberdeen Asset Managers Ltd. (1.9%)
  • SBI Funds Management Pvt Ltd. (1.7%)
  • The Vanguard Group, Inc. (1.6%)
  • Aberdeen Asset Management (Asia) Ltd. (1.6%)

Contact Details

Related Companies

  • Sakar Industries Pvt Ltd.
  • HMCL Netherlands BV
  • HMCL Americas, Inc.

Competitors

    Last Updated on 16 Aug, 2018

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