HERO MOTOCORP LTD - SECOND QUARTER RESULTS - Q2 FY 15 - SEPTEMBER 2014 - NET SALES UP 20.49%; NET PROFITS UP 59% YoY

HERO MOTOCORP LTD

BRIJMOHAN LALL MUNJAL, CHAIRMAN

PAWAN MUNJAL MD & CEO

SECOND QUARTER RESULTS Q2 FY 15

SEPTEMBER 2014

Hero Motocorp has declared excellent results for the second quarter ending September 2014. The results are in the table Below :

Sales Numbers have gone up 19.51% YoY. 

Net Sales in Rupee terms has gone up 20.49% YoY. Since expenses have risen less than proportionately by 16.89% only YoY, the operational profit has zoomed up by 57.54 % YoY.  

Net Profits have gone up by 58.57% YoY.

RESULTS TABLE :

HERO MOTO	Q2 FY15	Q1 FY15	QoQ Dif%	Q2 FY14	YoY Dif%
NO. SOLD	1692523	1715254	-1.33	1416276	19.51
NET SALES	686350	699940	-1.94	569646	20.49
TOTAL INCOME	691534	703684	-1.73	572621	20.77
TOTAL EXP	605548	638116	-5.1	518042	16.89
OPT	85986	65568	31.14	54579	57.54
PBT	104843	76545	36.97	65829	59.27
NPT	76337	56276	35.65	48141	58.57
EPS(FV.Rs.2)	38.23	28.18	35.66	24.11	58.56

QUARTER-WISE PERFORMANCE in 2013-14

(from Annual Report)

Q1 (APRIL 2013 – June 2013)

Entered Africa and Central America with the launch of Brand Hero in these markets

First-ever equity investment in an overseas firm; to buy 49.2% equity at Erik Buell Racing (EBR) for US$ 25 Million

Launched India’s first-ever warranty of five years on all its two-wheelers (5 years or 70,000 km on motorcycles)

Launched the retail finance arm, Hero FinCorp, with a phase-wise expansion plan

Q2 (July 2013 – September 2013)

Became the first Indian two-wheeler company to reach the historic milestone of 50 million units production

Introduced an innovative campaign titled ‘Hero Mileage’, capturing Hero’s best-in-class fuel-efficiency across its product range; and the tagline – ‘Thoda Extra Kilometre Per Litre’ - has gone on to become part of the youth lingo 

Initiated project ‘Leap 20’ to bring very high levels of innovation across our supply chain, and partnering with our suppliers to drive 

significant improvements in our cost structure, even as we raise the bar even higher on product quality and reliability

Q3 (October 2013-Dec 2013)

Appointed Head of Strategy & Performance Transformation and Head of the newly-created division of Engine Design & Development

Commenced construction of our ‘Hero Centre of Global Innovation and Research & Design (R&D)’ at Kukas, near Jaipur in Rajasthan,  investing Rs.450 crores

Forms new joint venture in partnership with Magneti Marelli to develop next-gen two-wheeler fuelling systems

Unveils 15 new offerings, with new-gen features including the all-new Splendor iSmart, Karizma R, ZMR, Xtreme and Pleasure

Registered 6.25 lakh sales in October 2013, first-ever manufacturer to cross the landmark 6 lakh unit sales in a month

Launched Splendor iSmart with ‘i3S Technology, Pleasure with Integrated Braking System, Xtreme with ‘Electronic Immobiliser’ and Karizma & Karizma ZMR

Series of refreshes and variants of existing platforms, include HF Dawn & HF Deluxe, Splendor Pro, Super Splendor, Passion Pro, HF Deluxe Eco, Glamour and Glamour F

Q4 (January  2014 – March  2014)

Showcased an exciting range of products for the future at 2014 Auto Expo

Entered Bangladesh and Turkey with an array of popular Hero motorcycles and scooter

EXCERPTS FROM AR 2014

Fresh capacities have been planned accordingly. As I write this, our fourth facility at Neemrana is ready to start production, and our global parts centre will be functional before the end of the calendar year. We have also started the land development work at our Halol plant in Gujarat.

In fact, I am convinced that our most challenging phase is now behind us. Hero has moved beyond the legacy of its past, and is progressing steadily towards its destiny of becoming a global and independent bike and scooter powerhouse.

Our footprint now spans South Asia, Africa, Central and Latin America, with a presence in Europe via Turkey. To serve customers in select markets faster, Hero MotoCorp has also sewn up joint ventures in critical markets and has kick-started overseas assembly operations. The first such operation has come up in Kenya.

Separate equity ventures with local firms in Bangladesh and Columbia are also in place. We will build on these exciting forays. Hero began developing an R&D ecosystem from ground up eighteen months ago. This has flowered remarkably.


OTHER LATEST NEWS : 


Hero MotoCorp wants to invest Rs 5,000 crore over 2-3 years in capacity building. 

"We are aiming to be in the European markets towards the end of 2015. Leap will make its debut first in Europe," Vice Chairman and MD Pawan Munjal said. "For the US market, our products are currently undergoing homologation."
 
Hero Motocorp has also unveiled its 4th manufacturing facility and global parts centre at Neemrana in Rajasthan. Mr.Munjal said the Rs 5,000 crore investment plan covers its "factory at Neemrana, the new plants coming up at Halol in Gujarat and in Colombia and Bangladesh, the Hero Global Centre for Innovation and R&D at Kukas in Rajasthan and the proposed plant in Andhra Pradesh".

2 new scooters will be launched in the next eight to 12 months with its own Technology. The company so far depended on erstwhile joint-venture partner Honda Motor for technology.
 

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