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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 2021 INRUSD
Revenue305,090.10M4,109.78M
Gross Profit57,772.50M778.23M
Operating income30,074.80M405.12M
Income before tax38,958.80M524.80M
Net income29,177.50M393.04M
EBITDA37,226M501.46M
Diluted EPS146.041.96
Dividends Per Share901.21
Total Assets233,049.90M3,187.49M
Total liabilities77,453.80M1,059.36M
Total equity154,164.20M2,108.55M
Operating cash flow41,755.50M562.47M
Currency in INRCurrency in USD

Historical Data

 Mar 2017Mar 2018Mar 2019Mar 2020Mar 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 2017Mar 2018Mar 2019Mar 2020Mar 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
PER19.95
ROA13.52%
ROE19.56%
Operating margin9.85%
Profit margin9.56%

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 (11.4%)
  • Westwood Global Investments LLC (2.1%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.6%)
  • SBI Funds Management Pvt Ltd. (1.6%)
  • Hermes Investment Management Ltd. (1.5%)
  • Norges Bank Investment Management (1.4%)
  • PPFAS Asset Management Private Ltd. (1.3%)

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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