MIRA INFORM REPORT
|
Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
HERO MOTOCORP LIMITED (w.e.f. July, 2011) |
|
|
|
|
Formerly Known
As : |
HERO HONDA MOTORS LIMITED |
|
|
|
|
Registered
Office : |
34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.01.1984 |
|
|
|
|
Com. Reg. No.: |
55-017354 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.399.400 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L35911DL1984PLC017354 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELH00028A |
|
|
|
|
PAN No.: [Permanent Account No.] |
A AACH0812J |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
The Company is engaged in the manufacturing and selling of motorised two-wheelers
spares parts and related services. |
|
|
|
|
No. of Employees
: |
5257 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 200240000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of hero group. It is well established company having good track record. Financially company is performing good. Fundamentals of the company are
strong and healthy. No borrowings by the company. It is reputed company created its brand all over. Share price are quoted high on stock exchange. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating AAA |
|
Rating Explanation |
Highest degree of safety It carry lowest
credit risk. |
|
Date |
March 28, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating A1+ |
|
Rating Explanation |
Highest degree of safety. It carry lowest
credit risk. |
|
Date |
March 28, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-11-2614257)
LOCATIONS
|
Registered Office / Corporate Office : |
34, Community Centre, Basant Lok, Vasant Vihar, New Delhi – 110057, India |
|
Tel. No.: |
91-11-26142451 / 26144121 / 46044100 |
|
Fax No.: |
91-11-26143321 / 26143198 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plant 1 : |
Dharuhera Plant 69 K.M. Stone, Delhi-Jaipur Highway, Dharuhera, District Rewari - 122 100 Haryana, India |
|
Tel. No.: |
91-1274-264 000 |
|
Fax No.: |
91-1274-267 018 |
|
|
|
|
Plant 2 : |
Gurgaon Plant 37 K.M. Stone, Delhi-Jaipur Highway, Sector 33, Gurgaon – 122 001 Haryana, India |
|
Tel. No.: |
91-124-2894200/2372123 |
|
Fax No.: |
91-124 2373 141/42 |
|
|
|
|
Plant 3 : |
Haridwar Plant Plot No. 3, Sector 10, I.I.E., SIDCUL, Roshanabad, Haridwar – 249 403, Uttarakhand, India |
|
Tel. No.: |
91-1334-238500/239514-16 |
|
Fax No.: |
91-1334-239512-13 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Brijmohan Lall Munjal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pawan Munjal |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Sunil Kant Munjal |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Suman Kant Munjal |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Paul Edgerley |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Gen. (Retd.) V. P. Malik |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Mr. Analjit Singh |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Dr. Pritam Singh |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Mr. M. Damodaran |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Mr. Ravi Nath |
|
Designation : |
Non-Executive and Independent Director |
|
|
|
|
Name : |
Dr. Anand C. Burman |
|
Designation : |
Non-Executive and Independent Director |
KEY EXECUTIVES
|
Audit Committee |
|
|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Gen. (Retd.) V. P. Malik |
|
Designation : |
Member |
|
|
|
|
Name : |
Dr. Pritam Singh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. M. Damodaran |
|
Designation : |
Member |
|
|
|
|
Shareholders’ Grievance Committee |
|
|
Name : |
Dr. Pritam Singh |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. M. Damodaran |
|
Designation : |
Member |
|
|
|
|
Remuneration Committee |
|
|
Name : |
Gen. (Retd.) V. P. Malik |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Ravi Nath |
|
Designation : |
Member |
|
|
|
|
Senior Management Team |
|
|
Name : |
Mr. Ravi Sud |
|
Designation : |
Sr. Vice President and Chief Financial Officer |
|
|
|
|
Name : |
Mr. Anil Dua |
|
Designation : |
Sr. Vice President-Sales and Marketing |
|
|
|
|
Name : |
Mr. Vikram Kasbekar |
|
Designation : |
Head-Operations and Supply Chain |
|
|
|
|
Name : |
Mr. Neeraj Mathur |
|
Designation : |
Vice President-Strategic Sourcing and Supply Chain |
|
|
|
|
Name : |
Dr. Anadi S. Pande |
|
Designation : |
Vice President-HRM, Corporate Planning and Strategy |
|
|
|
|
Name : |
Mr. Vijay Sethi |
|
Designation : |
Vice President-Information Systems |
|
|
|
|
Compliance Officer |
|
|
Name : |
Mr. Ilam C. Kamboj |
|
Designation : |
Sr. General Manager - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
62404852 |
31.25 |
|
|
17307630 |
8.67 |
|
|
79712482 |
39.92 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
79712482 |
39.92 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
5295850 |
2.65 |
|
|
540811 |
0.27 |
|
|
10187517 |
5.10 |
|
|
61522822 |
30.81 |
|
|
77547000 |
38.83 |
|
|
|
|
|
|
3311160 |
1.66 |
|
|
|
|
|
|
12047796 |
6.03 |
|
|
723679 |
0.36 |
|
|
26345383 |
13.19 |
|
|
233028 |
0.12 |
|
|
562329 |
0.28 |
|
|
1003018 |
0.50 |
|
|
24547008 |
12.29 |
|
|
42428018 |
21.25 |
|
Total Public shareholding (B) |
119975018 |
60.08 |
|
Total (A)+(B) |
199687500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
199687500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the manufacturing and selling of motorised two-wheelers spares parts and related services. |
||||
|
|
|
||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
5257 (Approximately) |
|
|
|
|
Bankers : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
7th Floor,
Building No. 10, Tower B, DLF Cyber City Complex, DLF City Phase- II, Gurgaon
– 122 002, Haryana, India |
|
Tel. No.: |
91- 124-679 2000 |
|
Fax No.: |
91- 124-679 2012 |
|
E-Mail Id : |
|
|
|
|
|
Cost Auditors : |
|
|
Name : |
Ramanath Iyer and Company Chartered Accountants |
|
Address : |
BL - 4, (Paschmi), Shalimar Bagh, Delhi - 110088, India |
|
Tel. No.: |
91-11-2748 1904, 4702 8048 |
|
Fax No.: |
91-11-2748 1904 |
|
E-Mail Id : |
|
|
|
|
|
Parties in
respect of which the Company is an associate : |
Ø Hero Investment
Private Limited |
|
|
|
|
Associate : |
Ø Hero FinCorp
Limited (formally called Hero Honda Finlease limited) |
|
|
|
|
|
|
|
Enterprises over
which key management personnel and their relatives are able to exercise
significant influence : |
Ø
Brijmohan Lall and Associates Ø
A.G. Industries Private Limited Ø
Highway Industries Limited Ø
Rockman Industries Limited Ø
Cosmic Kitchen Private Limited Ø
Hero Management Services Limited Ø
Hero Cycles Limited Ø
Hero Corporate Services Limited Ø Hero Mindmine
Institute Limited Ø Easy Bill
Limited and Raman Kant Munjal Foundation |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.2/- each |
Rs.500.000 Millions |
|
400000 |
Cumulative Convertible Preference Shares |
Rs.100/- each |
Rs.40.000 Millions |
|
400000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.40.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.580.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
199687500 |
Equity Shares |
Rs.2/- each |
Rs.399.400
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
399.400 |
399.400 |
399.400 |
|
(b) Reserves & Surplus |
49663.000 |
42498.900 |
29161.200 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
50062.400 |
42898.300 |
29560.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
1324.100 |
2082.600 |
2467.700 |
|
(c) Other long term
liabilities |
3021.600 |
10113.900 |
14710.400 |
|
(d) long-term
provisions |
301.600 |
380.000 |
356.800 |
|
Total Non-current
Liabilities (3) |
4647.300 |
12576.500 |
17534.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
18733.400 |
22931.700 |
20733.000 |
|
(c) Other current
liabilities |
8876.400 |
9962.000 |
28980.200 |
|
(d) Short-term
provisions |
14097.000 |
10520.700 |
10453.900 |
|
Total Current
Liabilities (4) |
41706.800 |
43414.400 |
60167.100 |
|
|
|
|
|
|
TOTAL |
96416.500 |
98889.200 |
107262.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
18917.600 |
17431.400 |
16125.300 |
|
(ii) Intangible Assets |
11792.200 |
20423.700 |
24677.500 |
|
(iii) Capital
work-in-progress |
620.900 |
388.400 |
499.600 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
6144.700 |
6739.600 |
4654.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
7800.600 |
5336.400 |
3422.900 |
|
(e) Other
Non-current assets |
364.400 |
260.100 |
164.300 |
|
Total Non-Current
Assets |
45640.400 |
50579.600 |
49544.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
30093.600 |
32903.000 |
46632.900 |
|
(b) Inventories |
6367.600 |
6755.700 |
5249.300 |
|
(c) Trade receivables |
6650.000 |
2723.100 |
1305.900 |
|
(d) Cash and cash
equivalents |
1810.400 |
768.200 |
715.200 |
|
(e) Short-term loans
and advances |
5535.500 |
4756.000 |
3447.200 |
|
(f) Other current
assets |
319.000 |
403.600 |
367.900 |
|
Total Current Assets |
50776.100 |
48309.600 |
57718.400 |
|
|
|
|
|
|
TOTAL |
96416.500 |
98889.200 |
107262.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
237681.100 |
235790.300 |
193979.300 |
|
|
|
Other Income |
3983.800 |
3645.700 |
2896.200 |
|
|
|
TOTAL |
241664.900 |
239436.000 |
196875.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
173648.600 |
173654.100 |
141351.700 |
|
|
|
Changes in inventories
of finished goods and work-in-progress |
328.000 |
(838.400) |
(240.600) |
|
|
|
Employee benefits expenses |
8209.200 |
7355.200 |
6189.500 |
|
|
|
Other expenses |
22650.500 |
19431.600 |
20553.400 |
|
|
|
TOTAL |
204836.300 |
199602.500 |
167854.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
36828.600 |
39833.500 |
29021.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
119.100 |
213.000 |
151.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
36709.500 |
39620.500 |
28869.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
11417.500 |
10973.400 |
4023.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
EXCEPTIONAL ITEMS AND TAX |
25292.000 |
28647.100 |
24846.000 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEMS |
0.000 |
0.000 |
798.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
25292.000 |
28647.100 |
24047.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4110.400 |
4865.800 |
4769.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
21181.600 |
23781.300 |
19279.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
25385.700 |
14448.000 |
21465.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend -
Interim -
Proposed Final
|
-- 11981.300 |
-- 8985.900 |
13978.100 6989.100 |
|
|
|
Corporate Tax on Dividend |
2036.200 |
1457.700 |
3401.400 |
|
|
|
Transfer to General Reserve |
2150.000 |
2400.000 |
1927.900 |
|
|
BALANCE CARRIED
TO THE B/S |
30399.800 |
25385.700 |
14448.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
6202.400 |
5986.400 |
4442.300 |
|
|
|
Freight and Insurance |
42.200 |
9.100 |
3.900 |
|
|
TOTAL EARNINGS |
6244.600 |
5995.500 |
4446.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials* |
367.000 |
145.600 |
214.200 |
|
|
|
Components, spare parts and others * |
10111.600 |
9237.300 |
7523.800 |
|
|
|
Capital Goods |
1060.900 |
840.300 |
633.200 |
|
|
TOTAL IMPORTS |
11539.500 |
10223.200 |
8371.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
106.07 |
119.09 |
96.54 |
|
* Includes items sold to ancillaries on cost to cost basis for
assembling of components.
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.76
|
9.93 |
9.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.64
|
12.15 |
12.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
31.04
|
33.25 |
24.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.67 |
0.80 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.11 |
1.95 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
399.400 |
399.400 |
399.400 |
|
Reserves & Surplus |
29161.200 |
42498.900 |
49663.000 |
|
Net
worth |
29560.600 |
42898.300 |
50062.400 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
193979.300 |
235790.300 |
237681.100 |
|
|
|
21.554 |
0.802 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
193979.300 |
235790.300 |
237681.100 |
|
Profit |
19279.000 |
23781.300 |
21181.600 |
|
|
9.94% |
10.09% |
8.91% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
80065350 |
11/08/2005 |
400,000,000.00 |
HDFC BANK LIMITED |
KAILASH BUILDING , 26, K.G. MARG, NEW DELHI - 110001, INDIA |
- |
|
2 |
80065345 |
28/10/1998 * |
628,000,000.00 |
PUNJAB NATIONAL BANK |
ECE HOUSE, KASTURBA GANDHI MARG, NEW DELHI, - 110001, INDIA |
- |
|
3 |
90335393 |
06/01/1996 * |
28,000,000.00 |
PUNJAB NATIONAL BANK |
K.G. MARG, NEW DELHI, Delhi, INDIA |
- |
|
4 |
80065346 |
02/06/1989 |
80,000,000.00 |
PUNJAB NATIONAL BANK |
ECE HOUSE, KASTURBA GANDHI MARG, NEW DELHI - 110001, INDIA |
- |
|
5 |
80065347 |
28/06/1996 * |
80,000,000.00 |
PUNJAB NATIONAL BANK |
ECE HOUSE, KASTURBA GANDHI MARG, NEW DELHI - 110001, INDIA |
- |
* Date of charge modification
CORPORATE
INFORMATION
Subject is a
public company domiciled in India and incorporated under the provisions of the Companies
Act, 1956 on January 19, 1984. The name of the Company has been changed from
Hero Honda Motors Limited to Subjection July 29, 2011. The shares of the
Company are listed on two stock exchanges in India i.e. National Stock Exchange
(NSE) and Bombay Stock Exchange (BSE). The Company is engaged in the
manufacturing and selling of motorized two-wheelers spares parts and related
services. The Company is a leading two wheeler manufacturer and has a dominant
presence in domestic market.
GLOBAL
ECONOMY
During
FY 2012-13, the global economy had few reasons to cheer as Europe lurched from
one crisis to another and emerging economies grappled with unpredictable
roadblocks to their hitherto smooth economic growth. BRICS economies also ran
into turbulent weather, with each member nation, including China making a
desperate attempt to arrest sliding growth. China registered 7.7% growth in the
first quarter of 2013, as against 7.9% in the corresponding quarter of 2012.
Although
China remained the fastest growing major economy in the world, India finished
the year a close second with 5% GDP growth and Russia (3.4%), South Africa
(2.5%) and Brazil (0.9%) trailing behind. However, the over 15 trillion dollar
US economy continued to perform better on all macro-economic fundamentals,
keeping alive moderate optimism for a growth-hungry developed world. With debt
default concern looming over the Eurozone, the confidence of investors in the
US economy and dollar is rising considerably.
Easy
growth is not on the horizon for economies and businesses around the world.
Therefore, global corporations are increasingly investing in technology and
innovations to improve their competitiveness and foray into pristine markets.
New markets are emerging in South Asia, Africa and Latin and Central America,
with enhanced focus by governments on improving infrastructure, educational
standards, healthcare and the overall quality of life.
INDIAN
ECONOMY
The
Indian economy went through upheavals owing to global distress and persistent domestic
turbulence; challenges comprised firm inflation, high fiscal deficit, lack of
liquidity in the economy, policy uncertainty and currency volatility, leading
to a bleak investment scenario. India’s Gross Domestic Product (GDP) growth
rate moderated in 2012-13, owing to the underperformance by almost all sectors
of the economy. In addition, the Rupee’s historic plunge against the US dollar
has made the markets jittery and the government worried.
RECOVERY
INITIATIVES
The
Reserve Bank of India injected liquidity into the market during the year under
review by lowering interest rates in phases in order to spur investment and
catalyse economic growth. The government’s fiscal consolidation measures seem
to have yielded some results. Fiscal deficit declined to 4.89% in 2012-13, as
compared to 5.76% in 2011-12, while wholesale monthly inflation also came down
to 4.7% in May, 2013 from 8% in 2012-13. India’s current account deficit
moderated to 3.6% of GDP in January-March 2013 from a record high of 6.7% in October-
December
2012.
OUTLOOK
Going
forward, the Reserve Bank of India may continue to ease interest rates in a
phased manner to support growth, provided the depreciating rupee doesn’t put
undue pressure on inflation. The IMF expects India’s growth rates to pick up
pace slowly but steadily, starting from 6.5 % in 2013-14 to 6.7% in 2014-15.
TWO-WHEELER
INDUSTRY
During
2012-13, the two-wheeler industry lost the growth momentum it created over the last
few years. Sales grew marginally by 2.3%, with 15.8 million units of sales in
2012 - 13, compared to 15.4 million units in 2011-12. Motorcycle volumes—which
make up the bulk of the industry — grew by just 0.1% from 11.91 million units
in 2011-12 to 11.95 million units in 2012 -13. Similarly, sales of mopeds grew
by 0.8%, from 0.78 million units in 2011-12 to 0.79 million units in 2012-13.
The scooter category was the industry’s only bright spot, with 12.4% growth in
sales, from 2.73 million units in 2011-12 to 3.07 million units in 2012-13.
EXPORTS
For
the two-wheeler industry as a whole, export sales declined by 0.3% to 1.8
million units—an indication of the difficult economic conditions around the
world.
OPERATIONAL
PERFORMANCE
In
2012-13, Hero MotoCorp sold 6.07 million units compared to 6.23 million units
in the previous year. This was on account of poor rains, firm interest rates,
high fuel prices and heightened caution on the part of customers across the
two-wheeler industry.
In the
dominant motorcycle segment, Hero MotoCorp with sales of 5.5 million units,
continued to lead the domestic market with 46% market share. This, however, was
marginally lower than the 48.4% market share in 2011-12.
Sales
in the domestic motorcycle market remained flat at 10.08 million units,
compared to 10.07 million units in the previous year. In the Indian market,
Hero MotoCorp captured 53.2% market share, with sales of 5.3 million units.
Despite the slowdown, the Company sold more than the second, third and fourth
placed motorcycle manufacturers in India taken together during the year.
EXPORTS
Hero
MotoCorp, with sales of over 1,36,000 units, accounted for 7.3% of motorcycle
exports from India.
HERO
MOTOCORP’S INTERNATIONAL FOCUS
During
2012-13, the Company exported 1,61,043 units as compared to 1,65,925 units the
previous year resulting in a decline of 2.94%. Moreover, the Company exported
spare parts worth Rs.38.38 millions depicting a growth of 16% over the previous
year. The growth came as a result of distributor realignments in existing
markets, launches across Sri Lanka and Nepal, increased promotional activities
in Bangladesh and a stronger focus on the Columbian market.
In
2012-13, the Company prepared the template for an ambitious international foray
covering the countries of Africa, Latin America and Central America. At the
time of writing the Report, Hero MotoCorp’s first consignments to new
international markets across these geographies had been well received.
FIXED ASSETS
Ø Land
Ø Buildings
Ø Plant and machinery
Ø Furniture, fixtures and office equipment
Ø Vehicles
Ø Computer and data processing
Ø Machines
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED
31ST
DECEMBER, 2013
|
|
|
Particulars |
Quarter Ended |
Nine
Month |
|
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
Number of
Two Wheelers Sold |
1680940 |
1416276 |
4656498 |
|
|
|
|
|
|
|
|
1 |
Income from Operations |
|
|
|
|
|
|
a) Net
Sales/Income from Operations (net of excise duty) |
68459.100 |
56964.600 |
186692.100 |
|
|
|
b) Other
Operating Income |
306.700 |
297.500 |
933.000 |
|
|
|
Total Income from Operations (Net) |
68767.800 |
57262.100 |
187625.100 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of
Materials consumed |
49786.700 |
41144.800 |
1356344 |
|
|
b) |
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
202.700 |
(189.500) |
(133.600) |
|
|
c) |
Employee
benefit expenses |
2438.600 |
2289.900 |
6943.500 |
|
|
d) |
Depreciation
and amortization expense |
2732.400 |
2869.100 |
8345 |
|
|
e) |
Other
expenses |
7360.100 |
5689.900 |
18721.900 |
|
|
Total
Expenses |
62520.500 |
51504.200 |
169511.500 |
|
|
3 |
|
Profit /(Loss)
from operations before other income, finance costs and exceptional items
(1-2) |
6247.300 |
5457.900 |
1813.600 |
|
4 |
Other
Income |
956.800 |
1154.600 |
3234.000 |
|
|
5 |
|
Profit /(Loss)
from ordinary activities before finance costs and exceptional items (3+4) |
7204.100 |
6612.500 |
21347.600 |
|
6 |
Finance
Costs |
29.800 |
29.600 |
88.900 |
|
|
7 |
Profit
/(Loss) from ordinary activities before tax |
7174.300 |
6582.900 |
21258.700 |
|
|
8 |
Tax
Expense |
1927.700 |
1768.600 |
5712.200 |
|
|
9 |
Net Profit
/(Loss) from ordinary activities after tax (9-10) |
5246.600 |
4814.100 |
15546.500 |
|
|
10 |
Paid up
equity share capital (Eq. shares of
Rs.10/- each) |
399.400 |
399.400 |
399.400 |
|
|
|
Face value
of share (Rs.) |
20.000 |
20.000 |
20.000 |
|
|
11 |
Reserve
excluding revaluation reserves |
|
|
|
|
|
|
|
Basic and
Diluted earnings per share face value Rs. 2/- each(In Rupee) |
26.27 |
24.11 |
22.85 |
|
|
|||||
|
A |
|
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
|
Public
Shareholding |
(Rs. 2.00 Per
Shares) |
(Rs. 2.00 Per Shares) |
(Rs. 2.00 Per Shares) |
|
|
|
- No. of
Shares |
119975018 |
119975018 |
119975018 |
|
|
|
-
Percentage of Shareholding |
60.06% |
60.08% |
60.08% |
|
2 |
|
Promoters
and promoter group shareholding |
|
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
|
- Number
of shares |
Nil |
Nil |
Nil |
|
|
|
-
Percentage of shares ( as a % of the total shareholding of the promoter and
promoter group) |
-- |
-- |
-- |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
|
|
b) Non-
encumbered |
|
|
|
|
|
|
- Number
of shares |
79712482 |
79712482 |
79712482 |
|
|
|
- Percentage
of shares ( as a % of the total shareholding of the promoter and promoter
group) |
100.00 |
100.00 |
100.00 |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
39.92% |
39.92% |
39.92% |
|
|
Particulars |
Quarter
ended 31.12.2013 |
|
|
B |
|
Investor
Complaints |
|
|
|
|
Pending at
the beginning of the quarter |
5 |
|
|
|
Received
during the quarter |
83 |
|
|
|
Disposed
during the quarter |
87 |
|
|
|
Remaining unresolved
at the end of the quarter |
1 |
NOTE:
- The above results for the quarter and
nine months ended December 31, 2013 have been reviewed and recommended by the Audit committee and approved by the
Board of Directors [Board] in their respective meetings held on Thursday,
January 30, 2014.
- As the Company's business activity falls within a single primary business segment viz
"Two-Wheelers. Its parts and ancillary services' and is a single
geographical segment, the disclosure requirements of Accounting Standard (AS-1 7) "Segment
Reporting: specified in the Companies (Accounting Standard) Rules, 2006 are not applicable.
- During the quarter, the Company has set up a Joint Venture
Company [JVC] Le. HMC MM Auta Limited. With Magneti Marelli S.p.A. and has initially invested approx. Rs.
18.000 Millions as part of capital contribution In the JYC.
- In line with notification No. G.S.R, 378
(E) dated May 11, 2011 issued by the ministry of corporate Affairs.
Government of India. the exchange differences arising after April 1, 2007
on reporting of long term foreign currency monetary items at rates
at end of quarter compared to those at
which they were initially
recorded, or reported in previous financial statements, in so far as they
relate to the acquisition of a depreciable capital asset, have been added to or deducted from the cost
of the assets and shall be depreciated over the balance useful life of the asset.
- Previous period/year figures have been
regrouped/ reclassified wherever necessary, to make them comparable.
- The above results of the Company are available on the Company's www.heromatocwp.com and also
on www.bseindia.cam and www.nseindia.cam
PRESS RELEASE
Hero
forms JV in Bangladesh; to set up manufacturing plant
April
21, 2014
The joint venture, in which Hero MotoCorp will hold 55 percent stake and
rest will lie with the Bangladeshi partner, plans to set up a new manufacturing
facility which will have an annual capacity of 1.5 lakh units when fully
functional by second quarter of 2015-16.
Country's largest two-wheeler maker Hero MotoCorp today announced a
joint venture with Bangladesh's Nitol Niloy group and the two plan to invest
around USD 40 million (over Rs 240 crore) in next five years.
The joint venture, in which Hero MotoCorp will hold 55 percent stake and
rest will lie with the Bangladeshi partner, plans to set up a new manufacturing
facility which will have an annual capacity of 1.5 lakh units when fully
functional by second quarter of 2015-16.
Also read: Bajaj management prejudiced against workers' demands: Union
The plant in Bangladesh will be the first full-fledged manufacturing facility
for the Indian two-wheeler major outside India.
The diversified Nitol Niloy group has interests in various sectors and
also markets Tata Motors' vehicles in Bangladesh. "The commencement of our
operations in Bangladesh is a significant milestone in our strategic global
expansion plans. In addition to our first overseas joint venture, this is also
where our first manufacturing plant outside India will come up," Hero
MotoCorp MD and CEO Pawan Munjal said in a statement.
Once operational by the second quarter of 2015-16 fiscal, the plant will
have an annual capacity of 1.5 lakh units, he added.
"We are aiming to have around 20 per cent of market share here
(Bangladesh) in the first year of our operation,"Munjal said. Commenting
on the development, Nitol Niloy Group Chairman Abdul Matlub Ahmad said the aim
of the joint venture is to provide technologically advanced, innovative and fuel
efficient two-wheelers for customers in Bangladesh.
Hero MotoCorp will hold 55 percent in the joint venture while 45 percent
will be held by the Nitol Niloy Group.
"There will be a total equity injection of USD 12.6 million in a
ratio of 55:45 over a period of two years. The new venture will have a capex of
USD 23.2 million in the first year of its operation and a total investment of
USD 40 million over the next five years," the company said.
Already, Hero MotoCorp is selling a range of motorcycles in Bangladesh
through the initial 50 retail outlets.
The range of Hero motorcycles being sold in the neighbouring country
includes HF Dawn, Spledor+, Passion Pro, Glamour, Hunk and 100 cc scooter
Pleasure.
Hero MotoCorp, after separating from Honda in 2011, has augmented its
global presence and currently sells products across 18 countries, including
Peru, Guatemala, Turkey and Egypt.
The company has established assembly units in Kenya, Tanzania and Uganda
in East Africa through its distributors.
Last year, the company had announced plans to enter 50 new markets by
2020 with a target of 20 manufacturing facilities across the globe with an
overall annual turnover of Rs 600000.000 millions by that time.
Hero Motocorp
stock price
On April 17, 2014, Hero Motocorp closed at Rs 2205.55, up Rs 37.45, or
1.73 percent. The 52-week high of the share was Rs 2320.00 and the 52-week low
was Rs 1451.15.
The company's trailing 12-month (TTM) EPS was at Rs 106.61 per share as
per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio
was 20.69. The latest book value of the company is Rs 250.70 per share. At
current value, the price-to-book value of the company is 8.80.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.22 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
78 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.