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 2021	INR	USD
Revenue	305,090.10M	4,109.78M
Gross Profit	57,772.50M	778.23M
Operating income	30,074.80M	405.12M
Income before tax	38,958.80M	524.80M
Net income	29,177.50M	393.04M
EBITDA	37,226M	501.46M
Diluted EPS	146.04	1.96
Dividends Per Share	90	1.21
Total Assets	233,049.90M	3,187.49M
Total liabilities	77,453.80M	1,059.36M
Total equity	154,164.20M	2,108.55M
Operating cash flow	41,755.50M	562.47M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	282,966.80M	318,804.50M	335,162M	288,779.40M	305,090.10M
Gross Profit	73,800.70M	78,235.80M	72,599.90M	59,470.40M	57,772.50M
Operating income	38,859.90M	42,737M	40,608.20M	30,005.70M	30,074.80M
Income before tax	48,304.80M	52,424.40M	50,435.40M	45,764.50M	38,958.80M
Net income	35,842.70M	37,204M	34,440.90M	36,381.10M	29,177.50M
EBITDA	43,882.40M	48,486.80M	46,852.60M	38,463.30M	37,226M
Diluted EPS	179.49	186.29	172.43	182.14	146.04
Dividends Per Share	85	95	87	90	90
Total Assets	153,849.50M	189,323.20M	186,038.40M	198,322.60M	233,049.90M
Total liabilities	50,020.60M	68,676.50M	53,673.20M	52,853.80M	77,453.80M
Total equity	103,155.10M	119,714.60M	131,204.10M	144,062.80M	154,164.20M
Operating cash flow	41,752.40M	42,117.80M	13,551.30M	58,169.20M	41,755.50M

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	4,219.79M	4,945.30M	4,791.95M	4,072.70M	4,109.78M
Gross Profit	1,100.56M	1,213.59M	1,037.99M	838.72M	778.23M
Operating income	579.50M	662.93M	580.59M	423.17M	405.12M
Income before tax	720.35M	813.20M	721.09M	645.42M	524.80M
Net income	534.51M	577.10M	492.41M	513.08M	393.04M
EBITDA	654.40M	752.12M	669.87M	542.45M	501.46M
Diluted EPS	2.67	2.88	2.46	2.56	1.96
Dividends Per Share	1.26	1.47	1.24	1.26	1.21
Total Assets	2,369.28M	2,902.76M	2,685.50M	2,621.53M	3,187.49M
Total liabilities	770.31M	1,052.97M	774.78M	698.65M	1,059.36M
Total equity	1,588.59M	1,835.50M	1,893.96M	1,904.30M	2,108.55M
Operating cash flow	622.63M	653.33M	193.74M	820.37M	562.47M

Valuation Measures

Mar 2021
PER	19.95
ROA	13.52%
ROE	19.56%
Operating margin	9.85%
Profit margin	9.56%

Key executives

Chairman & Chief Executive Officer: Pawan Kant Munjal
Chief Operating & Human Resources Officer: Michael J. P. Clarke
Chief Financial Officer: Niranjan Gupta
Chief Technical Officer & Executive Director: Vikram S. Kasbekar
Secretary & Chief Compliance Officer: Neerja Sharma

Shareholders

Bahadur Chand Investments Pvt Ltd. (20.0%)
MUNJAL PAWAN KANT (14.0%)
Life Insurance Corp of India (12.2%)
Westwood Global Investments LLC (2.2%)
The Vanguard Group, Inc. (1.9%)
SBI Funds Management Pvt Ltd. (1.7%)
BlackRock Fund Advisors (1.6%)
PPFAS Asset Management Private Ltd. (1.5%)
Hermes Investment Management Ltd. (1.5%)
Norges Bank Investment Management (1.3%)

Contact Details

Website:http://www.heromotocorp.com
Address: The Grand Plaza, Nelson Mandela Road, New Delhi, 110070, India
Phone: +91.11.43222400

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Last Updated on 29 Nov, 2021