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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 2020 INRUSD
Revenue288,779.40M4,072.70M
Gross Profit59,470.40M838.72M
Operating income30,005.70M423.17M
Income before tax45,764.50M645.42M
Net income36,381.10M513.08M
EBITDA38,463.30M542.45M
Diluted EPS182.142.56
Dividends Per Share901.26
Total Assets198,322.60M2,621.53M
Total liabilities52,853.80M698.65M
Total equity144,062.80M1,904.30M
Operating cash flow58,169.20M820.37M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 282,216.50M 282,966.80M 318,804.50M 335,162M 288,779.40M
Gross Profit 70,776.70M 73,800.70M 78,235.80M 72,599.90M 59,470.40M
Operating income 40,471.90M 38,859.90M 42,737M 40,608.20M 30,005.70M
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 38,463.30M
Diluted EPS 157.34 179.49 186.29 172.43 182.14
Dividends Per Share 72 85 95 87 90
Total Assets 129,542.90M 153,849.50M 189,323.20M 186,038.40M 198,322.60M
Total liabilities 40,655.50M 50,020.60M 68,676.50M 53,673.20M 52,853.80M
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 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 4,310.56M 4,219.79M 4,945.30M 4,791.95M 4,072.70M
Gross Profit 1,081.04M 1,100.56M 1,213.59M 1,037.99M 838.72M
Operating income 618.16M 579.50M 662.93M 580.59M 423.17M
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 542.45M
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 2,621.53M
Total liabilities 613.92M 770.31M 1,052.97M 774.78M 698.65M
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
PER8.75
ROA18.93%
ROE26.43%
Operating margin10.39%
Profit margin12.59%

Key executives

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

Shareholders

  • Bahadur Chand Investments Pvt Ltd. (20.0%)
  • MUNJAL PAWAN KANT (14.0%)
  • Life Insurance Corp of India (6.2%)
  • Westwood Global Investments LLC (2.2%)
  • The Vanguard Group, Inc. (1.8%)
  • SBI Funds Management Pvt Ltd. (1.7%)
  • Norges Bank Investment Management (1.6%)
  • Hermes Investment Management Ltd. (1.2%)
  • Massachusetts Financial Services Co. (1.1%)
  • BlackRock Fund Advisors (1.1%)

Contact Details

Related Companies

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

Competitors

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