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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