Hero MotoCorp Ltd.

In the news

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Bajaj Auto profit beats estimate, bucking weak India two-wheeler demand Jul 26, 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 2019	INR	USD
Revenue	335,162M	4,791.95M
Gross Profit	72,599.90M	1,037.99M
Operating income	40,608.20M	580.59M
Income before tax	50,435.40M	721.09M
Net income	34,440.90M	492.41M
EBITDA	46,852.60M	669.87M
Diluted EPS	172.43	2.46
Dividends Per Share	87	1.24
Total Assets	186,038.40M	2,685.50M
Total liabilities	53,673.20M	774.78M
Total equity	131,204.10M	1,893.96M
Operating cash flow	13,551.30M	193.74M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019
Revenue	274,707.30M	282,216.50M	282,966.80M	318,804.50M	335,162M
Gross Profit	57,423M	70,776.70M	73,800.70M	78,235.80M	72,599.90M
Operating income	29,244.30M	40,471.90M	38,859.90M	42,737M	40,608.20M
Income before tax	32,919.60M	43,526.70M	48,304.80M	52,424.40M	50,435.40M
Net income	23,647M	31,419.80M	35,842.70M	37,204M	34,440.90M
EBITDA	34,648.80M	66,096.70M	43,882.40M	48,486.80M	46,852.60M
Diluted EPS	118.42	157.34	179.49	186.29	172.43
Dividends Per Share	60	72	85	95	87
Total Assets	106,606.60M	129,542.90M	153,849.50M	189,323.20M	186,038.40M
Total liabilities	41,021.20M	40,655.50M	50,020.60M	68,676.50M	53,673.20M
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	13,551.30M

	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019
Revenue	4,492.83M	4,310.56M	4,219.79M	4,945.30M	4,791.95M
Gross Profit	939.15M	1,081.04M	1,100.56M	1,213.59M	1,037.99M
Operating income	478.28M	618.16M	579.50M	662.93M	580.59M
Income before tax	538.39M	664.82M	720.35M	813.20M	721.09M
Net income	386.74M	479.90M	534.51M	577.10M	492.41M
EBITDA	566.68M	1,009.55M	654.40M	752.12M	669.87M
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	2,685.50M
Total liabilities	655.48M	613.92M	770.31M	1,052.97M	774.78M
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	193.74M

Valuation Measures

Mar 2019
PER	14.81
ROA	18.35%
ROE	27.45%
Operating margin	12.11%
Profit margin	10.27%

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 (6.9%)
SBI Funds Management Pvt Ltd. (2.9%)
Templeton Global Advisors Ltd. (2.1%)
The Vanguard Group, Inc. (1.7%)
Westwood Global Investments LLC (1.6%)
Norges Bank Investment Management (1.5%)
BlackRock Fund Advisors (1.4%)
Lazard Asset Management LLC (1.3%)

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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Competitors

Last Updated on 17 Oct, 2019