Hero MotoCorp (HEROMOTOCO) Q4 96/97 earnings summary

Executive summary

• FY1996-97 sales and other income rose 21.9% to ₹782.83 crore; profit before tax increased 55.2% to ₹65.11 crore and profit after tax rose 91.2% to ₹50.36 crore.

• Motorcycle sales reached 268,931 units, up 16.84%, despite capacity constraints until late in the year.

Financial highlights

• Sales and other income was ₹78,283.04 lakh versus ₹64,219.29 lakh; sales net of excise duty were ₹76,791.47 lakh.

• PBT was ₹6,510.67 lakh versus ₹4,193.73 lakh; PAT was ₹5,035.67 lakh versus ₹2,633.73 lakh.

• Finance charges increased to ₹868.30 lakh from ₹588.02 lakh; depreciation was ₹1,323.30 lakh versus ₹1,072.35 lakh.

• Motorcycle exports increased 26% to 15,059 units from 11,937; export sales were ₹4,745 lakh versus ₹3,508 lakh.

Outlook and guidance

• Dharuhera capacity expansion from 240,000 to 300,000 motorcycles p.a. was completed late in FY1996-97; further expansion to 375,000 p.a. was underway.

• Gurgaon plant, with capacity of 150,000 motorcycles p.a., began commercial production; a new model was in development for launch in 1998.

• Development work targeted year-2000 emission norms and further localization of Street-100 CKD parts.