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Consumer Durables

Hero MotoCorp Ltd.

  • 2,533.95 INR
  • -8.50
  • -0.33%
  • India
    Jul 16, 2019
  • Ticker
    BOM(500182)
  • Prev. close
    2,542.45
  • Market cap (INR)
    507,795.58M
  • Market cap (USD)
    7,390.28M
  • Shares
    199.72M

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 2019 INRUSD
Revenue339,722.30M4,857.15M
Gross Profit81,253.40M1,161.71M
Operating income43,954M628.42M
Income before tax51,043M729.78M
Net income34,291.10M490.27M
EBITDA50,198.40M717.70M
Diluted EPS172.442.46
Dividends Per Share871.24
Total Assets185,043.60M2,671.14M
Total liabilities52,678.40M760.42M
Total equity131,204.10M1,893.96M
Operating cash flow----
Currency in INRCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 274,707.30M 282,216.50M 282,966.80M 318,804.50M 339,722.30M
Gross Profit 57,423M 70,776.70M 73,800.70M 78,235.80M 81,253.40M
Operating income 29,244.30M 40,471.90M 38,859.90M 42,737M 43,954M
Income before tax 32,919.60M 43,526.70M 48,304.80M 52,424.40M 51,043M
Net income 23,647M 31,419.80M 35,842.70M 37,204M 34,291.10M
EBITDA 34,648.80M 44,904.40M 43,882.40M 48,486.80M 50,198.40M
Diluted EPS 118.42 157.34 179.49 186.29 172.44
Dividends Per Share 60 72 85 95 87
Total Assets 106,606.60M 129,542.90M 153,849.50M 189,323.20M 185,043.60M
Total liabilities 41,021.20M 40,655.50M 50,020.60M 68,676.50M 52,678.40M
Total equity 65,400M 88,341.10M 103,155.10M 119,714.60M 131,204.10M
Operating cash flow 23,058.60M 38,791.20M 41,752.40M 42,117.80M --
 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 4,492.83M 4,310.56M 4,219.79M 4,945.30M 4,857.15M
Gross Profit 939.15M 1,081.04M 1,100.56M 1,213.59M 1,161.71M
Operating income 478.28M 618.16M 579.50M 662.93M 628.42M
Income before tax 538.39M 664.82M 720.35M 813.20M 729.78M
Net income 386.74M 479.90M 534.51M 577.10M 490.27M
EBITDA 566.68M 685.86M 654.40M 752.12M 717.70M
Diluted EPS 1.93 2.40 2.67 2.88 2.46
Dividends Per Share 0.98 1.09 1.26 1.47 1.24
Total Assets 1,703.49M 1,956.17M 2,369.28M 2,902.76M 2,671.14M
Total liabilities 655.48M 613.92M 770.31M 1,052.97M 760.42M
Total equity 1,045.04M 1,334.00M 1,588.59M 1,835.50M 1,893.96M
Operating cash flow 377.12M 592.49M 622.63M 653.33M --

Valuation Measures

Mar 2019
PER14.81
ROA18.31%
ROE27.33%
Operating margin12.93%
Profit margin10.09%

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
  • VP-Strategic Sourcing & Supply Chain Management: Neeraj Kumar Mathur

Shareholders

  • Bahadur Chand Investments Pvt Ltd. (19.9%)
  • MUNJAL PAWAN KANT (14.0%)
  • Life Insurance Corp. of India (6.4%)
  • SBI Funds Management Pvt Ltd. (2.9%)
  • Templeton Global Advisors Ltd. (2.1%)
  • Lazard Asset Management LLC (2.0%)
  • The Vanguard Group, Inc. (1.6%)
  • Aberdeen Standard Investments (Asia) Ltd. (1.5%)
  • Westwood Global Investments LLC (1.4%)
  • Norges Bank Investment Management (1.3%)

Contact Details

Related Companies

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

Competitors

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