Hero MotoCorp Ltd.

In the news

Indian stocks crash by 13% in one day as economic activity stops Mar 23, 2020
Asian stocks gain as G7 finance chiefs move to tackle epidemic Mar 3, 2020
India's bike makers slowed as coronavirus disrupts parts supply Feb 25, 2020
Bajaj Auto's domestic motorcycle sales skid amid shift to new fuel norm Feb 4, 2020
Bajaj Auto backs ride-sharing platform Yulu in EV push Nov 29, 2019

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 2020	INR	USD
Revenue	292,539.70M	4,125.74M
Gross Profit	66,879.40M	943.21M
Operating income	32,151.60M	453.43M
Income before tax	45,764.50M	645.42M
Net income	36,381.10M	513.08M
EBITDA	40,609.20M	572.71M
Diluted EPS	182.15	2.56
Dividends Per Share	90	1.26
Total Assets	196,740.70M	2,600.62M
Total liabilities	51,271.90M	677.74M
Total equity	144,062.80M	1,904.30M
Operating cash flow	58,169.20M	820.37M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	282,216.50M	282,966.80M	318,804.50M	335,162M	292,539.70M
Gross Profit	70,776.70M	73,800.70M	78,235.80M	72,599.90M	66,879.40M
Operating income	40,471.90M	38,859.90M	42,737M	40,608.20M	32,151.60M
Income before tax	43,526.70M	48,304.80M	52,424.40M	50,435.40M	45,764.50M
Net income	31,419.80M	35,842.70M	37,204M	34,440.90M	36,381.10M
EBITDA	66,096.70M	43,882.40M	48,486.80M	46,852.60M	40,609.20M
Diluted EPS	157.34	179.49	186.29	172.43	182.15
Dividends Per Share	72	85	95	87	90
Total Assets	129,542.90M	153,849.50M	189,323.20M	186,038.40M	196,740.70M
Total liabilities	40,655.50M	50,020.60M	68,676.50M	53,673.20M	51,271.90M
Total equity	88,341.10M	103,155.10M	119,714.60M	131,204.10M	144,062.80M
Operating cash flow	38,791.20M	41,752.40M	42,117.80M	13,551.30M	58,169.20M

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	4,310.56M	4,219.79M	4,945.30M	4,791.95M	4,125.74M
Gross Profit	1,081.04M	1,100.56M	1,213.59M	1,037.99M	943.21M
Operating income	618.16M	579.50M	662.93M	580.59M	453.43M
Income before tax	664.82M	720.35M	813.20M	721.09M	645.42M
Net income	479.90M	534.51M	577.10M	492.41M	513.08M
EBITDA	1,009.55M	654.40M	752.12M	669.87M	572.71M
Diluted EPS	2.40	2.67	2.88	2.46	2.56
Dividends Per Share	1.09	1.26	1.47	1.24	1.26
Total Assets	1,956.17M	2,369.28M	2,902.76M	2,685.50M	2,600.62M
Total liabilities	613.92M	770.31M	1,052.97M	774.78M	677.74M
Total equity	1,334.00M	1,588.59M	1,835.50M	1,893.96M	1,904.30M
Operating cash flow	592.49M	622.63M	653.33M	193.74M	820.37M

Valuation Measures

Mar 2020
PER	8.75
ROA	19.00%
ROE	26.43%
Operating margin	10.99%
Profit margin	12.43%

Key executives

Chairman, Chief Executive Officer & MD: Pawan Kant Munjal
Chief Financial Officer: Niranjan Gupta
Chief Information & Human Resources Officer: Vijay Sethi
Director & Chief Technology Officer: Vikram S. Kasbekar
Secretary & Chief Compliance Officer: Neerja Sharma

Shareholders

Bahadur Chand Investments Pvt Ltd. (19.9%)
MUNJAL PAWAN KANT (14.0%)
Life Insurance Corp of India (7.1%)
Westwood Global Investments LLC (2.5%)
SBI Funds Management Pvt Ltd. (2.1%)
The Vanguard Group, Inc. (1.7%)
Hermes Investment Management Ltd. (1.6%)
Lazard Asset Management LLC (1.4%)
Norges Bank Investment Management (1.4%)
BlackRock Fund Advisors (1.1%)

Contact Details

Website:http://www.heromotocorp.com
Address: 34, Community Centre, Basant Lok, New Delhi, 110057, India
Phone: +91.11.46044100

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Last Updated on 3 Jul, 2020