Hero MotoCorp (HEROMOTOCO) Q4 99/00 earnings summary

Executive summary

• FY00 motorcycle sales rose 43.5% to 761,623, nearly four times the 11% industry growth; net-of-excise sales increased 51% to Rs2,248.17 crore.

• PAT advanced 58% to Rs192.08 crore and PBT rose 65% to Rs284.62 crore.

Financial highlights

• Total income reached Rs2,269.87 crore, up 50.8% YoY; sales and other income was Rs2,269.87 crore versus Rs1,504.91 crore.

• Manufacturing and other expenses were Rs1,942.45 crore versus Rs1,299.15 crore; depreciation was Rs34.67 crore and interest Rs4.71 crore.

• Net fixed assets rose to Rs372.83 crore from Rs308.63 crore; total assets reached Rs513.17 crore versus Rs388.16 crore.

• Interim dividend of Rs10 per share was paid and proposed as the final dividend; the reported dividend rate was 100%.

Outlook and guidance

• Targeting production and sales of more than 1 million motorcycles in FY01, with expenditure to be met from internal accruals rather than borrowings.

• Higher export sales expected in FY01 following launches in Sri Lanka, a Bangladesh workshop initiative and renewed exports to Kuwait.