Hero MotoCorp (HEROMOTOCO) Q4 97/98 earnings summary

Executive summary

• FY98 sales and other income reached Rs 1,160.72 crore, up 48.2% YoY; PBT rose to Rs 109.54 crore and PAT to Rs 76.60 crore.

• Motorcycle production and sales increased 51.5% to 407,546 units, supported by full Dharuhera capacity utilization and higher output from Gurgaon.

Financial highlights

• Sales and other income were Rs 116,071.82 lakh vs Rs 78,283.04 lakh in FY97; net sales were reported after excise duty.

• PBT was Rs 10,954.40 lakh vs Rs 6,510.67 lakh; PAT was Rs 7,660.40 lakh vs Rs 5,035.67 lakh.

• Manufacturing and other expenses were Rs 102,245.32 lakh vs Rs 69,409.72 lakh; depreciation was Rs 1,878.56 lakh and finance charges Rs 790.95 lakh.

• EPS was Rs 38.36; the Board recommended a 40% dividend, including the 16% interim dividend already paid.

Outlook and guidance

• R&D priorities included developing for year 2000 emission norms, further indigenization of CKD parts and building mass-emission testing capability.

• Multi-source lubricant approvals for all models and continued development of Street, CD-100 and Splendor components were planned.