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Consumer Durables

Hero MotoCorp Ltd.

  • 3,733.90 INR
  • -10.90
  • -0.29%
  • India
    Apr 20, 2018
  • Ticker
    BOM(500182)
  • Prev. close
    3,744.80
  • Market cap (INR)
    747,879.50M
  • Market cap (USD)
    11,325.28M
  • 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. operates as a two wheeler manufacturing company. It provides two wheelers, its parts and ancillary services. The company offers service and maintenance through a network of dealers and service outlets. Hero MotoCorp was founded by Brijmohan Lall Munjal on January 19, 1984 and is headquartered in New Delhi, India.

Financial Highlights

Mar 2017 INRUSD
Revenue282,966.80M4,219.79M
Gross Profit73,800.70M1,100.56M
Operating income41,742.70M622.49M
Income before tax48,304.80M720.35M
Net income35,842.70M534.51M
EBITDA46,765.20M697.39M
Diluted EPS179.492.67
Dividends Per Share851.26
Total Assets153,849.50M2,369.28M
Total liabilities50,020.60M770.31M
Total equity103,155.10M1,588.59M
Operating cash flow41,752.40M622.63M
Currency in INRCurrency in USD

Historical Data

 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 237,351.50M 252,458.60M 274,707.30M 282,216.50M 282,966.80M
Gross Profit 40,914.40M 46,875.20M 57,423M 70,776.70M 73,800.70M
Operating income 21,305.10M 24,166.40M 29,244.30M 40,471.90M 41,742.70M
Income before tax 25,292M 28,641M 32,919.60M 43,526.70M 48,304.80M
Net income 21,181.60M 21,026.60M 23,647M 31,419.80M 35,842.70M
EBITDA 32,722.60M 35,240.10M 34,648.80M 44,904.40M 46,765.20M
Diluted EPS 106.07 105.30 118.42 157.34 179.49
Dividends Per Share 60 65 60 72 85
Total Assets 96,489.80M 101,263.80M 106,606.60M 129,542.90M 153,849.50M
Total liabilities 46,427.40M 45,028.90M 41,021.20M 40,655.50M 50,020.60M
Total equity 50,062.40M 56,226.40M 65,400M 88,341.10M 103,155.10M
Operating cash flow 19,857.90M 30,938M 23,058.60M 38,791.20M 41,752.40M
 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 4,361.03M 4,177.40M 4,492.83M 4,310.56M 4,219.79M
Gross Profit 751.75M 775.63M 939.15M 1,081.04M 1,100.56M
Operating income 391.45M 399.87M 478.28M 618.16M 622.49M
Income before tax 464.70M 473.92M 538.39M 664.82M 720.35M
Net income 389.18M 347.92M 386.74M 479.90M 534.51M
EBITDA 601.23M 583.11M 566.68M 685.86M 697.39M
Diluted EPS 1.94 1.74 1.93 2.40 2.67
Dividends Per Share 1.10 1.07 0.98 1.09 1.26
Total Assets 1,775.34M 1,695.57M 1,703.49M 1,956.17M 2,369.28M
Total liabilities 854.23M 753.96M 655.48M 613.92M 770.31M
Total equity 921.11M 941.46M 1,045.04M 1,334.00M 1,588.59M
Operating cash flow 364.86M 511.92M 377.12M 592.49M 622.63M

Valuation Measures

Mar 2017
PER17.96
ROA25.29%
ROE37.43%
Operating margin14.75%
Profit margin12.66%

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%)
  • OppenheimerFunds, Inc. (3.8%)
  • Life Insurance Corp. of India (2.9%)
  • Aberdeen Asset Managers Ltd. (2.6%)
  • Lazard Asset Management LLC (2.4%)
  • Templeton Global Advisors Ltd. (2.0%)
  • Aberdeen Asset Management (Asia) Ltd. (1.8%)
  • SBI Funds Management Pvt Ltd. (1.6%)
  • The Vanguard Group, Inc. (1.6%)

Contact Details

Related Companies

  • HMCL Netherlands BV
  • HMCL Americas, Inc.

Competitors

    Last Updated on 20 Apr, 2018

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