Tuesday, January 3, 2012

HERO MOTOCORP (FORMERLY HERO HONDA) = RESULTS FOR Q2 FT 12 =SEP,2011 = EXCELLENT PERFORMANCE = NPT UP 8.2%QOQ;19.39%YOY.=3RD QTR SALES EVEN BETTER


Hero MotoCorp Limited

RESULTS FOR Q2 FY 12
 ENDING SEP,2011

Hero MotoCorp Ltd (formerly Hero Honda) has announced very good results for the 2nd quarter ending Sep,2011.

Net Sales stands at Rs.5784.32 cr in Q2 FY 12 – compared to Rs.5637.64 cr in Q1 FY 12 (Up by 2.6%) – and Rs.4511.29 cr in Q2 FY 11 (Up by 28.22%).

Raw Materials stands at Rs.4263.97 cr in Q2 FY 12 – compared to Rs.4241.43 cr in Q1 FY 12 (Up by 0.53%) and Rs.3385.74 cr in Q2 FY 11 (Up by 25.94%).

Total Expenditure stands at Rs.5189.10 cr in Q2 FY 12 – compared to Rs.5105.36 cr in Q1FY 12 (Up by 1.64%) – and Rs.4004.76 cr in Q2 FY 11 (Up by 29.57%).

Profit from Operations stands at Rs.640.22 cr in Q2 FY 12 – compared to Rs.577.97 cr in Q1 FY 12 (Up by 10.77%) – and compared to Rs.547.19 cr in Q2 FY 11 (Up by 17%).

Profit  before tax amounts to Rs.724.46 cr in q2 FY 12 – compared to Rs.669.57 cr in Q1 FY 12 (Up by 8.2%) – and compared to Rs.627.61 cr in Q2 FY 11 (Up by 15.43%).

Net Profit stands at Rs.603.62 cr in Q2 FY 12 – compared to Rs.557.89 cr (Up by 8.2%) and Rs.505.60 cr in Q2 FY 11 (Up by 19.39%).Sales and Net Profits have gone up both QOQ and YOY reasonably well – which is heartening.

On a Face Value of Rs.2, Basic EPS stands at Rs.30.23 in Q2 and Rs.27.94 in Q1. Of current year. At this rate annual EPS could be around Rs.116 – which is quite impressive.

Current Market Rate is Rs.1809.70; with the 52 week high price  at Rs.2249 and 52 week low price Rs.1375.75.

The Price Earnings Ratio comes to 15.6 – which is very LOW for hero Motorcorp. In a normal market, Hero must have much higher valuations.

Other Highlights :

Sales for Q2 FY 12 stands at 15,44,315units, a growth of  20%.

Over 3 mln units were sold in H1 FY 12, a growth of 22%.

EBIDTA margin for the quarter is at 15.76%.

Hero Motocorp says – that it has begun its New Journey with a record top line and bottom line performance.

After unveiling its new Global Brand identity in London on August 9th this year, it has notched up the highest ever monthly sales of 549,625 units in September. The company has launched its first Motor cycle under the “Hero” Brand name. The “Impulse” 150 cc is the country’s only dual-purpose on-road-off-roadbike-launching a new segment in Indian two wheeler market.

Clearly, Hero has started its New Brand strategy excellently and is slated to scale new heights.

We can see from the Press release synopsis below that Q3 FY 12 could be just as exciting as the Q2 Results reviewed above.

It is therefore a Good bet for Investment for Medium to long term Investors.

PRESS RELEASE SYNOPSIS


New Delhi, January 2, 2012:

Established an industry landmark, reporting its highest-ever sales for a calendar year – the first full year since embarking on its new journey.

sold record 6,117,599 units in January-December 2011, a growth of 19.2% over 2010 when it had sold 5,134,549 two-wheelers.

sold 540,276 units in December 2011, a growth of 7.8 per cent over the corresponding month of the previous year when the company had sold 501,111 units.

Q3 of FY’12 (October – December’11) also reported the most successful quarter with sales of 15,89,276 units, up by 11.3% over corresponding quarter in FY’11, when the company had sold 14,28,030 units.

cumulative sales in the period April-December 2011, has now risen to 46,63,168 units, a 18.1% growth over corresponding period last year (April-December’10) when the company had sold 39,47,713 units.

Year 2011 was most significant for Hero MotoCorp as it took a big leap by launching its new global and independent brand identity. ‘Hum Mein Hai Hero’, the re-branding campaign was an instant success, gained immense popularity and established Hero MotoCorp Ltd. as a strong entity.

On the new product front, this year saw an impressive addition to an already strong product portfolio of the company. Earlier this year, Hero MotoCorp launched refreshed models of Glamour and Glamour FI to further strengthen leadership in the deluxe segment. The company also introduced the refreshed version of Karizma ZMR. The festive season witnessed launch of Impulse, thereby launching an entirely new segment in the Indian two-wheeler market.

Hero MotoCorp received several awards for its first Hero branded on-and-off road bike, the Impulse. Apart from clinching the ‘Best Motorcycle up to 150 cc category” by NDTV Car & Bike Awards 2012, the trans-roader also won 2011 ET Zigwheels Bike of the Year award.

Hero MotoCorp was also yet again ranked No 1 brand in the Auto (two-wheelers) category in the Brand Equity “Most Trusted Brand” 2011 survey.

Hero MotoCorp also received accolades for its highly-innovative rebranding initiative. This initiative won the CNBC Awaaz-Storyboard special commendation for “Effective rebranding of a new corporate entity” at the CNBC Awaaz Consumer Awards 2011. The company also won the “Most Recommended Two-Wheeler Brand of the Year” award at the same awards.

RESULTS TABLE
HeroMotoCorp
30-Sep-11
30-Jun-11
%DIF
30-Sep-10
%DIF
Net Sales
578432
563764
2.6
451129
28.22
Other Oprting Income
4500
4569
-1.51
4066
10.67
Increase in SIT/WIP
-4023
332
-1311.8
-7572
-46.87
 Raw Materials
426397
424143
0.53
338574
25.94
Employees Cost
17937
16452
9.03
14982
19.72
Depreciation
27849
23979
16.14
6075
358.42
Other Expenditure
50750
45630
11.22
48417
4.82
Total Expenditure
518910
510536
1.64
400476
29.57
Profit from Operations
64022
57797
10.77
54719
17
Other Income
7975
8841
-9.8
7835
1.79
Interest
-449
-319
40.75
-207
116.91
Profit  before tax
72446
66957
8.2
62761
15.43
Tax expense
12084
11168
8.2
12201
-0.96
Net Profit
60362
55789
8.2
50560
19.39
Face Value (In Rs
2
2
0
2
0
Paid Up Equity
3994
3994
0
3994
0
Basic EPS
30.23
27.94
8.2
25.32
19.39
Public Holding (%)
0
47.79
-100
47.79
-100

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