updated hero motocorp ppt with different ratios based on financial markets

1. Hum
Main Hai
Hero

2. Introduction
• Hero Motocorp Ltd, formerly Hero Honda, is an Indian motorcycle and scooter
manufacturer based in New Delhi, India.
• It has three manufacturing facilities based at in Haryana and Uttarakhand.
• It has a large sales and service network with over 3,000 dealerships and service
points across India.
• It accounts for 46% of all bikes sold in India. The company exports to Africa, Asia,
Eastern Europe and Latin America.
• Hero Honda has a simple vision - the vision of a mobile and an empowered India,
powered by its two wheelers
Source: http://www.heromotocorp.com/en-in/

3. Source: http://www.heromotocorp.com/en-in/

4. TimelinePostDe-merger
2012:
• 1. Debut in the AMA Superbike Racing in the US
• 2. Migration of all products to Brand Hero
• 3. Launch of Impulse, Maestro and Ignitor
2013:
1. Global Parts Centre Foundation Stone laid
2. 50 Million cumulative 2 wheelers production
3. Neemrana Plant Foundation Stone laid Source: http://www.heromotocorp.com/en-in/

5. 2011

6. Dec.2010,Termination
of joint venture
Only 26% stake for
Hero Group in Hero
Honda JV.
Hero Group could not
export to international
but termination meant
export.
Heavy reliance on
Honda for Japanese
technology
Demerger
Source: http://www.heromotocorp.com/en-in/

7. Reasons for the Split.
Actions Taken.
Issues that Arose after the
Demerger
Source: http://www.heromotocorp.com/en-in/

8. KeyPersonnel
Dr. Brijmohan Lall Munjal
- Founder Director and Chairman of
the Company and the $3.2 billion Hero Group
- Past President of
(a) Confederation of Indian Industry (CII)
(b) Society of Indian Automobile Manufacturers (SIAM)
- Member of the Board of the Country's Central Bank
(Reserve Bank of India).
Source: http://www.heromotocorp.com/en-in/

9. Mr. Pradeep
Dinodia
Gen. (Retd.)V. P.
Mr. Suman
Kant Munjal
Mr. Paul
Edgerly
BoardOfDirectors

10. BoardOfDirectors
Mr. M
Damodaran
Dr. Pritam
Singh
Mr. Ravi NathMr. Pawan
Munjal

11. ShareholdingPattern
Holder's Name No of Shares % Share Holding
Promoters 79712482 39.92%
Foreign Institutions 60658982 30.38%
Foreign OCB 24547008 12.29%
Financial Institutions 13504113 6.76%
General Public 12721316 6.37%
Banks Mutual Funds 4023499 2.01%
Other Companies 3189393 1.6%
Others 1108136 0.55%
Foreign NRI 222571 0.11%

12. ProductsAndServices
• The company sells a range of products in motorcycles and
scooters (2-wheeler category).
• It also produces and sells spare parts for its 2-wheelers.
Source: http://www.heromotocorp.com/en-in/

13. Motorcycles
It has 17 models of motorcycles across the 100 cc, 125 cc, 150
cc, 225 cc categories.
Key products :
• Splendor
• Passion
• Glamour
• CBZ X-treme
• Hunk,
• Ignitor
Source: http://www.heromotocorp.com/en-in/

14. Scooters
It has 2 models in scooters:
• Pleasure
• Maestro
Source: http://www.heromotocorp.com/en-in/

15. 90%
10%
Motorbikes
Scootors
Sales Volume Contribution (%)

16. Exports
• Hero MotoCorp as of now exports only to Latin and Central America
and Africa
• They aiming to sell one million units across the world by 2016-2017
• The Hero motorcycles to be sold in these markets include a mix of
models from the 100cc and 125cc range.
• For the fiscal 2013-14, Hero MotoCorp has earmarked Rs 1,100
crore as capital expenditure
• Exports grew 24% during the year 2011-2012, as they exported
164,570 two-wheelers

17. Achievements
• Green Pioneer award
• Best value for money bike maker
• Life achievement awards from TERI, E&Y, AIMA and ET.
• The Brand Trust Report published by Trust Research Advisory ranked
Hero Honda in the 13th position.
• Forbes 200 ‘Most Respected’ companies
• Indian Automotive Hall of Pride by Overdrive
Source: http://www.heromotocorp.com/en-in/

18. Abridged Annual Statements of
Past 5 years
• Balance Sheet (March 2009-2013)
• Profit and Loss (March 2009-2013)
Source: www.moneycontrol.com

19. SOURCES OF FUNDS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Total Share Capital 39.94 39.94 39.94 39.94 39.94
Equity Share Capital 39.94 39.94 39.94 39.94 39.94
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 4,966.30 4,249.89 2,916.12 3,425.08 3,760.81
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 5,006.24 4,289.83 2,956.06 3,465.02 3,800.75
Secured Loans 302.16 994.85 1,458.45 0.00 0.00
Unsecured Loans 0.00 0.00 32.71 66.03 78.49
Total Debt 302.16 994.85 1,491.16 66.03 78.49
TOTAL LIABILITIES 5,308.40 5,284.68 4,447.22 3,531.05 3,879.24
BalanceSheet

20. APPLICATION OF FUNDS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Gross Block 4,427.29 6,308.26 5,538.46 2,750.98 2,516.27
Less: Accum. Depreciation 1,356.31 2,522.75 1,458.18 1,092.20 942.56
Net Block 3,070.98 3,785.51 4,080.28 1,658.78 1,573.71
Capital Work in Progress 62.09 193.95 125.14 48.14 120.54
Investments 3,623.83 3,964.26 5,128.75 3,925.71 3,368.75
Inventories 636.76 675.57 524.93 436.40 326.83
Sundry Debtors 665.00 272.31 130.59 108.39 149.94
Cash and Bank Balance 181.04 56.10 47.75 1,863.48 217.49
Total Current Assets 1,482.80 1,003.98 703.27 2,408.27 694.26
Loans and Advances 1,401.95 926.99 783.48 438.46 325.80
Fixed Deposits 0.00 20.72 23.77 43.73 2.08
Total CA, Loans & Advances 2,884.75 1,951.69 1,510.52 2,890.46 1,022.14
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,893.39 3,520.66 5,316.40 3,965.69 1,678.93
Provisions 1,439.86 1,090.07 1,081.07 1,026.35 526.97
Total CL & Provisions 4,333.25 4,610.73 6,397.47 4,992.04 2,205.90
Net Current Assets -1,448.50 -2,659.04 -4,886.95 -2,101.58 -1,183.76
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

21. FinancialPerformanceAnalysisof
ConsolidatedBalanceSheet
Net Worth
Total Debt
Total current assets and loans and advances

22. 5006
2956
3465
3800
4289
Net Worth

23. TotalAssetsandTotalAssetTurnoverratio
2008-09 2009-10 2010-11 2011-12 2012-13
3879.24
3531.05
4447.22
5284.68 5308.4
Total Assets Rs. in cr.
0
5000
10000
15000
20000
25000
30000
2008-09 2009-10 2010-11 2011-12 2012-13
Sales Rs. in cr.
0
2
4
6
2008-09 2009-10 2010-11 2011-12 2012-13
Total Asset Turnover Ratio

24. Announced an investment of Rs 2,575 crore
in expanding capacity at its three existing
plants
The company will make initial investment of
Rs.400 crore in the Neemrana facility.
Hero MotoCorp has also signed a state
support agreement (SSA) with the Gujarat
government to set up a new plant in the site.
Current Investments

25. Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
INCOME
Sales Turnover 23,768.11 25,252.98 20,787.27 16,856.43 13,553.23
Excise Duty 0.00 1,666.18 1,420.30 1,016.85 1,227.85
Net Sales 23,768.11 23,586.80 19,366.97 15,839.58 12,325.38
Other Income 398.38 347.46 238.27 290.69 222.14
Stock Adjustments 0.00 94.03 27.00 -11.54 22.09
TOTAL INCOME 24,166.49 24,028.29 19,632.24 16,118.73 12,569.61
EXPENDITURE
Raw Materials 17,470.73 17,485.65 14,236.45 10,822.99 8,842.14
Power & Fuel Cost 129.18 112.66 100.47 81.05 73.70
Employee Cost 820.92 735.52 618.95 560.32 448.65
Other Manufacturing Expenses 0.00 51.62 409.89 454.36 354.08
Selling and Admin Expenses 0.00 1,257.84 1,090.72 885.03 669.98
Miscellaneous Expenses 2,025.33 389.52 340.42 280.64 205.90
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
ProfitAndLossStatement

26. Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Operating Profit 3,321.95 3,648.02 2,597.07 2,743.65 1,753.02
PBDIT 3,720.33 3,995.48 2,835.34 3,034.34 1,975.16
Interest 11.91 33.43 28.20 11.14 13.04
PBDT 3,708.42 3,962.05 2,807.14 3,023.20 1,962.12
Depreciation 1,141.75 1,097.34 402.38 191.47 180.66
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 2,566.67 2,864.71 2,404.76 2,831.73 1,781.46
Extra-ordinary items 0.00 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 2,566.67 2,864.71 2,404.76 2,831.73 1,781.46
Tax 411.04 486.58 476.86 599.90 499.70
Reported Net Profit 2,118.18 2,378.13 1,927.90 2,231.83 1,281.76
Total Value Addition 2,975.43 2,547.16 2,560.45 2,261.40 1,752.31
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 1,198.13 898.59 2,096.72 2,196.56 399.38
Corporate Dividend Tax 203.62 145.77 340.14 371.00 67.87
Per share data (annualised)
Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88 1,996.88 1,996.88
Earning Per Share (Rs) 106.07 119.09 96.55 111.77 64.19
Equity Dividend (%) 3,000.00 2,250.00 5,250.00 5,500.00 1,000.00

27. Financial Performance Analysis
Of Consolidated Profit & Loss
Net Sales
Operating Profit
Earning Per Share
ROCE
EBITDA
PBT
PAT

28. Net Sales
15839
23586
19366
12325
23763
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

29. Operating Profit
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

30. Earning Per Share
64.19
111.77
96.55
119.09
106.07
0
20
40
60
80
100
120
140
2008-09 2009-10 2010-11 2011-12 2012-13
EPS
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

31. ROCE
48.57
52.13
49.83
75.05
43.33
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

32. Ebitda
3720
3995
2835
3034
1975
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

33. PBT
2566
2864
2404
2831
1781
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

34. PAT
2118
2231
1281
2378
2007
Source: http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-motors/HHM

35. Key Indicators of Profitability
(%)
2012-13 2011-12 2011-10
Return on Capital Employed 48.57 49.83 52.13
Profit After Tax/ Income from
Operations
92.57 100.7 101.9
Profit Before Tax/ Income from
Operations
112.1 121.3 127.2
Profit Before Interest and Tax/
Income from Operations
136.40 122.81 106.33
Operating Profit before Tax/ Income
from Operations
145.1 154.5 137.3
Operating Profit Before
Depreciation, Interest And Tax/
Income from Operations
162.5 169.3 149.9

36. Ratio Analysis

37. TurnoverRatio
0
5
10
15
20
25
30
35
Mar '11
Mar '12
Mar '13
4.67
4.77
4.67
4.58 6.11 7.53
31.95
29.51
32.11
Total Assets Turnover Ratio
Fixed Assets Turnover Ratio
Inventory Turnover Ratio
Source-Moneycontrol.com

38. Liquidity Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Mar '11
Mar '12
Mar '13
0.132
0.285
0.5120.231
0.477
0.733
Quick Ratio
Current Ratio
Source-Moneycontrol.com

39. Profitability Ratio
0
2
4
6
8
10
12
14
16
Mar '11 Mar '12 Mar '13
11.33
10.81
9.17
13.4
15.46
13.97
9.89
10.04
8.76 Gross Profit Margin(%)
Operating Profit Margin(%)
Net Profit Margin(%)
Source-Moneycontrol.com

40. Leverage Ratio
0 50 100 150 200 250 300
Mar '11
Mar '12
Mar '13
100.544
119.518
312.37
85.275
85.693
215.505
0.335
0.188
0.057
Debt Equity Ratio
Interest Cover
Financial Charges
Coverage Ratio
Source-Moneycontrol.com

41. Creditor’sPaymentPeriodCalculation
Year Creditors’ Days
2010-11 45.126
2011-12 41.979
2012-13 33.442

42. PeerGroupAnalysis
Source: www.moneycontrol.com
www.money.livemint.com

43. Top5ListedCompetitors
Bajaj Auto Limited LML Maharashtra Scooters
TVS Motor Company Limited Kinetic Motors

44. 46%
20%
17%
10%
4%
2%
1%
Current market Share
Hero Moto Corp
Bajaj Auto
Honda
TVS
Yamaha
Suzuki
Mahindra

45. Sales Growth Trend Analysis

46. Companies Average of past 5 years
Hero Motorcorp 8.158
Bajaj Auto 14.566
LML -30.364
Maharashtra Scooters Ltd. -18.7
TVS Motors 1.154
Kinetic Motors -45.14
-140
-120
-100
-80
-60
-40
-20
0
20
40
2008-09 2009-10 2010-11 2011-12 2012-13
Sales Margin
Hero Motocorp Bajaj Auto LML Maharashtra Scooters Ltd. TVS Motors Kinetic Motors
Sales Margin of past 5 years

47. EBIDTA(inCr.)
ROCE(in%)
Hero
MotoCorp
Bajaj Auto LML
Maharashtra
Scooters
TVS Kinetic
3,111.8 13,136.722 -11.44 14.69 362.796 -7.82
Hero
MotoCorp
Bajaj Auto LML
Maharashtra
Scooters
TVS Kinetic
53.786 56.04 35.87 a11.38 10.61 379.886

48. ROE(in%)
PAT(inCr.)
Hero
MotoCorp
Bajaj Auto LML
Maharashtra
Scooters
TVS Kinetic
54.092 59.532 0.00 8.008 13.84 0.00
Hero
MotoCorp
Bajaj Auto LML
Maharashtra
Scooters
TVS Kinetic
19,875.56 23,494.92 -62.89 16.55 84.40 -22.36

49. NetSales
Company Name Last Price Change % Change
Net Sales
(Rs. cr)
Hero Motocorp 2,265.25 18.75 0.83 23,768.11
Bajaj Auto 2,078.95 23.00 1.12 19,997.25
TVS Motor 96.00 0.30 0.31 7,065.00
LML 5.20 -0.01 -0.19 245.39
Mah Scooters 463.75 0.00 0.00 6.70
Kinetic Eng 40.35 0.00 0.00 80.22

50. Comparison between

51. Source: www.money.livemint.com

52. Source: www.money.livemint.com

53. Source: www.money.livemint.com

54. BAJAJ AUTO
HERO
MOTOCORP
Dividend Payout Ratio (%) 41.6 56.6 73.5%
Dividend Payout Ratio
Market
Cap
(Rs. Cr)
Revenue
(Rs. Cr)
Net Profit
(Rs. Cr)
Net Margin
(%)
RoE (%) Price to
Book
Price to
Earnings
Hero
Motocorp
44,818.86 24,908.26 2,128.88 8.40 45.57 6.83 21.05
Bajaj Auto 59,945.27 19,963.70 3,245.16 15.66 43.66 5.83 18.47
Past 1 year comparison
Source: www.money.livemint.com

55. Source: www.economictimes.com

56. StockPriceComparison–Top5
Company Name 1 Year 9 Month 6 Month 3 Month 1 Month 2 Week 1 Week
Last
Price
Bajaj Auto
1794.90
15.94%
1917.45
8.53%
1988.20
4.67%
1900.40
9.50%
1942.70
7.12%
1968.40
5.72%
1977.90
5.21%
2,081.00
Hero Motocorp
1541.90
47.46%
1662.25
36.78%
2008.80
13.18%
2067.50
9.97%
1965.10
15.70%
2100.60
8.24%
2066.90
10.00%
2,273.65
Kinetic Eng
54.85
-26.44%
52.00
-22.40%
68.00
-40.66%
39.00
3.46%
38.75
4.13%
38.70
4.26%
39.05
3.33%
40.35
LML
5.10
2.94%
5.10
2.94%
5.40
-2.78%
6.69
-21.52%
5.19
1.16%
5.15
1.94%
5.06
3.75%
5.25
Mah Scooters
369.10
25.98%
410.00
13.41%
393.45
18.19%
405.80
14.59%
516.20
-9.92%
468.55
-0.76%
471.10
-1.29%
465.00
TVS Motor
32.45
196.15%
32.80
192.99%
36.80
161.14%
78.95
21.72%
85.90
11.87%
86.20
11.48%
96.40
-0.31%
96.10
Source: www.moneycontrol.com

57. Growing
working
population
Middle class
population
expanding by
3mn a year
Fast paced
urbanization
Lack of good
public
transport
Increasing
city limits
Reasons for Growth

58. Future Growth
• The company aims of achieving revenues of $10billion and volumes
of 10 million two-wheelers by 2016-17
• Hero MotoCorp hopes to achieve 10 per cent of their revenues from
international markets
• Hero Motocorp achieved a turnover of 24,000 crore in the last year
and it plans on achieving a turnover of 60,000 crores by 2020.
• Launching as many as 12 new products by April 2014.
• Entering new markets by 2050 the country is expected to top the
world with approximately 611million vehicles on the nation’s road.

59. Upcoming Projects
• Setting up a fourth plant at Neemrana in Rajasthan
• Setting up a fifth plant at Halol in Gujarat
• Setting up a new state-of-the-art integrated R&D centre at
Kukas, Rajasthan
• Setting up a Global Parts Centre (GPC) at Neemrana,
Rajasthan
Source: http://www.heromotocorp.com/en-in/

60. Bibliography
• http://autocarpro.in/contents/technologyDetails.aspx?TechnologyID=
122
• http://www.wheelsunplugged.com/news/hero-motocorp-plans-go-
abroad-new-models-year/1236
• http://en.wikipedia.org/wiki/Hero_MotoCorp#cite_note-livemint1-20
• http://www.thehindubusinessline.com/companies/hero-motocorp-q1-
net-down-11-at-rs-549-cr/article4948658.ece
• http://www.moneycontrol.com/india/stockpricequote/auto-23-
wheelers/hero-honda-motors/HHM
• http://www.heromotocorp.com/en-in/

61. Group Members
• Abhishek Shinde -13002
• Divya Gandhi -13021
• Imad Sirkhot -13032
• Karen D’Souza -13037
• Ketaki Misra -13038
• Kirk Coutinho -13040