Hero MotoCorp (HEROMOTOCO) Q4 00/01 earnings summary

Executive summary

• FY2000-01 motorcycle sales reached 1,029,510 units, crossing the one-million mark; sales and other income rose to ₹3,192.96 crore and PAT to ₹246.87 crore.

• Motorcycle market share rose to 47% from 42%; capacity stood at 1.2 million units, with expansion to 1.5 million planned over 1–2 years.

Financial highlights

• Net sales increased 41% YoY to ₹3,170.91 crore; total income increased 41% to ₹3,192.96 crore.

• PBT was ₹376.95 crore, up 32% YoY; PAT was ₹246.87 crore, up 29% YoY.

• Operating profit rose 39.8% to ₹369.34 crore; operating margin was 11.65% versus 11.75% in FY1999-00.

Outlook and guidance

• Production capacity planned to expand from 1.2 million to 1.5 million motorcycles over 1–2 years; planned capex to be funded from internal accruals.

• Focus remains on value-based pricing, after-sales service and evolving consumer needs amid increased competition; April 2001 Joy launch received a positive response.