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 2023	INR	USD
Revenue	341,583.80M	4,250.34M
Gross Profit	72,669.10M	904.22M
Operating income	33,963.80M	422.61M
Income before tax	38,605.10M	480.36M
Net income	28,099.60M	349.64M
EBITDA	40,937.70M	509.39M
Diluted EPS	140.49	1.74
Dividends Per Share	100	1.24
Total Assets	239,170.30M	2,910.23M
Total liabilities	71,364M	868.36M
Total equity	166,555.70M	2,026.65M
Operating cash flow	27,885.60M	346.98M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	335,162M	288,779.40M	305,090.10M	290,604.90M	341,583.80M
Gross Profit	72,599.90M	59,470.40M	57,772.50M	51,281.20M	72,669.10M
Operating income	40,608.20M	30,005.70M	30,074.80M	23,754M	33,963.80M
Income before tax	50,435.40M	45,764.50M	38,958.80M	32,571.60M	38,605.10M
Net income	34,440.90M	36,381.10M	29,177.50M	23,168.80M	28,099.60M
EBITDA	46,852.60M	38,463.30M	37,226M	30,649.20M	40,937.70M
Diluted EPS	172.43	182.14	146.04	115.92	140.49
Dividends Per Share	87	90	90	95	100
Total Assets	186,038.40M	198,322.60M	233,049.90M	227,226.90M	239,170.30M
Total liabilities	53,673.20M	52,853.80M	77,453.80M	67,279.90M	71,364M
Total equity	131,204.10M	144,062.80M	154,164.20M	158,466.50M	166,555.70M
Operating cash flow	13,551.30M	58,169.20M	41,755.50M	22,151.50M	27,885.60M

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	4,791.95M	4,072.70M	4,109.78M	3,900.23M	4,250.34M
Gross Profit	1,037.99M	838.72M	778.23M	688.24M	904.22M
Operating income	580.59M	423.17M	405.12M	318.80M	422.61M
Income before tax	721.09M	645.42M	524.80M	437.14M	480.36M
Net income	492.41M	513.08M	393.04M	310.95M	349.64M
EBITDA	669.87M	542.45M	501.46M	411.34M	509.39M
Diluted EPS	2.46	2.56	1.96	1.55	1.74
Dividends Per Share	1.24	1.26	1.21	1.27	1.24
Total Assets	2,685.50M	2,621.53M	3,187.49M	2,998.70M	2,910.23M
Total liabilities	774.78M	698.65M	1,059.36M	887.89M	868.36M
Total equity	1,893.96M	1,904.30M	2,108.55M	2,091.27M	2,026.65M
Operating cash flow	193.74M	820.37M	562.47M	297.29M	346.98M

Valuation Measures

Mar 2023
PER	16.69
ROA	12.04%
ROE	17.29%
Operating margin	9.94%
Profit margin	8.22%

Key executives

Chief Executive Officer: Niranjan Gupta
Chief Operating & Human Resources Officer: Michael J. P. Clarke
Chief Technology Officer: Arun Jaura
Chief Information & Digital Officer: Reema Jain
Secretary & Compliance Officer: Dhiraj Kapoor

Shareholders

Bahadur Chand Investments Pvt Ltd. (20.0%)
MUNJAL PAWAN KANT (14.0%)
Life Insurance Corporation of India (Investment Portfolio) (12.7%)
ICICI Prudential Asset Management Co. Ltd. (4.1%)
Westwood Global Investments LLC (2.1%)
SBI Funds Management Pvt Ltd. (2.1%)
The Vanguard Group, Inc. (2.1%)
BlackRock Fund Advisors (1.5%)
Norges Bank Investment Management (1.4%)
Hermes Investment Management Ltd. (1.4%)

Contact Details

Website:http://www.heromotocorp.com
Address: The Grand Plaza, Nelson Mandela Road, New Delhi, 110070, India
Phone: +91.11.46044200

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Competitors

Last Updated on 7 Jun, 2023