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Consumer Durables

Hero MotoCorp Ltd.

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 2022 INRUSD
Revenue290,604.90M3,900.23M
Gross Profit51,281.20M688.24M
Operating income23,754M318.80M
Income before tax32,571.60M437.14M
Net income23,168.80M310.95M
EBITDA30,649.20M411.34M
Diluted EPS115.921.55
Dividends Per Share951.27
Total Assets227,226.90M2,998.70M
Total liabilities67,279.90M887.89M
Total equity158,466.50M2,091.27M
Operating cash flow22,151.50M297.29M
Currency in INRCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 318,804.50M 335,162M 288,779.40M 305,090.10M 290,604.90M
Gross Profit 78,235.80M 72,599.90M 59,470.40M 57,772.50M 51,281.20M
Operating income 42,737M 40,608.20M 30,005.70M 30,074.80M 23,754M
Income before tax 52,424.40M 50,435.40M 45,764.50M 38,958.80M 32,571.60M
Net income 37,204M 34,440.90M 36,381.10M 29,177.50M 23,168.80M
EBITDA 48,486.80M 46,852.60M 38,463.30M 37,226M 30,649.20M
Diluted EPS 186.29 172.43 182.14 146.04 115.92
Dividends Per Share 95 87 90 90 95
Total Assets 189,323.20M 186,038.40M 198,322.60M 233,049.90M 227,226.90M
Total liabilities 68,676.50M 53,673.20M 52,853.80M 77,453.80M 67,279.90M
Total equity 119,714.60M 131,204.10M 144,062.80M 154,164.20M 158,466.50M
Operating cash flow 42,117.80M 13,551.30M 58,169.20M 41,755.50M 22,151.50M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 4,945.30M 4,791.95M 4,072.70M 4,109.78M 3,900.23M
Gross Profit 1,213.59M 1,037.99M 838.72M 778.23M 688.24M
Operating income 662.93M 580.59M 423.17M 405.12M 318.80M
Income before tax 813.20M 721.09M 645.42M 524.80M 437.14M
Net income 577.10M 492.41M 513.08M 393.04M 310.95M
EBITDA 752.12M 669.87M 542.45M 501.46M 411.34M
Diluted EPS 2.88 2.46 2.56 1.96 1.55
Dividends Per Share 1.47 1.24 1.26 1.21 1.27
Total Assets 2,902.76M 2,685.50M 2,621.53M 3,187.49M 2,998.70M
Total liabilities 1,052.97M 774.78M 698.65M 1,059.36M 887.89M
Total equity 1,835.50M 1,893.96M 1,904.30M 2,108.55M 2,091.27M
Operating cash flow 653.33M 193.74M 820.37M 562.47M 297.29M

Valuation Measures

Mar 2022
PER19.80
ROA10.06%
ROE14.82%
Operating margin8.17%
Profit margin7.97%

Key executives

  • Chairman & Chief Executive Officer: Pawan Kant Munjal
  • Chief Operating & Human Resources Officer: Michael J. P. Clarke
  • Chief Financial Officer: Niranjan Gupta
  • Chief Technology Officer: Arun Jaura
  • Chief Information & Digital Officer: Reema Jain

Shareholders

  • Bahadur Chand Investments Pvt Ltd. (20.0%)
  • MUNJAL PAWAN KANT (14.0%)
  • Life Insurance Corporation of India (Investment Portfolio) (12.7%)
  • Exide Life Insurance Co. Ltd (2.4%)
  • Westwood Global Investments LLC (2.1%)
  • PPFAS Asset Management Private Ltd. (2.1%)
  • The Vanguard Group, Inc. (2.0%)
  • SBI Funds Management Pvt Ltd. (2.0%)
  • Norges Bank Investment Management (1.4%)
  • BlackRock Fund Advisors (1.3%)

Contact Details

Related Companies

  • Hero Tech Center Germany GmbH
  • Sakar Industries Pvt Ltd.
  • HMCL Netherlands BV
  • HMCL Americas, Inc.
  • HMC MM Auto Ltd.

Competitors

    Last Updated on 8 Aug, 2022

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