About Hero MotoCorp

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. It started in 1984 as a joint
venture between Hero Cycles and Honda of Japan. The joint venture between
Hero and Honda ended on 2010 and in August 2011, the company was
renamed Hero MotoCorp. The company became the largest two-wheeler
manufacturing company in India and also the 'World No.1' two-wheeler
company in terms of unit volume sales in a calendar year.
The plants of Hero MotoCorp are located at 4 locations. Two of these are
based at Gurgaon and Dharuhera and the other two are at Haridwar and
Neemrana. The wide reach of Hero MotoCorp in new geographies and growth
markets are the reasons for the companys continuous growth.

The market share of Hero MotoCorp is 41.2% in the domestic two-wheeler

market and 51.8% in the domestic motorcycle market in 2014. It has
presence in 19 countries which are spanning across 3 continents.

The chairman of Hero MotoCorp is Brijmohan Lall Munjal and the Managing
Director is Pawan Munjal.

10 year performance of Hero MotoCorp

1. Sales-

Units

14
20
13
-

13
20
12
-

12
20
11
-

11
20
10
-

10
20
09
-

09
20
08
-

08
20
07
-

07
20
06
-

06
20
05
-

20
04
-

05

8000000
5402444623520560755836245960
4600130
6000000
333675633371423722000
4000000 26214003000751
2000000
0

Units

Growth in sales is as follows:

Growth(%)
26.6

20

23.6
14.5

10

20
13
-

13

12

20
12
-

20
11
-

11

10

20
10
-

20
09
-

09

08

2.8

-2.6

20
08
-

20
07
-

07

06

20
06
-

20
05
-

05

20
04
-

Growth(%)

15.4

0.0

0
-10

17.4

11.5

11.2

14

30

Th
e sales has increased since last 10 years, but the growth in sales (no. of
units) has deteriorated over the years.
2. Net Sales (Revenue)

Sales(crores)
30000
25000
20000
15000
10000 7422

25125
2336823583
19245
15758
12319
8714 990010332

5000
20
04
-0
5
20
05
-0
6
20
06
-0
7
20
07
-0
8
20
08
-0
9
20
09
-1
0
20
10
-1
1
20
11
-1
2
20
12
-1
3
20
13
-1
4

Growth is shown below:

Sales(crores)

Growth(%)
Growth(%)

20
04
-0
5
20
05
-0
6
20
06
-0
7
20
07
-0
8
20
08
20 09
09
-1
0
20
10
-1
1
20
11
-1
2
20
12
-1
3
20
13
-1
4

30
27.9
27.2
25
22.1 21.4
20
19.2
17.4
15
13.6
10
6.5
5
4.4
0.9
0

The growth in revenue has also decreased over the years.

3. Profit before Tax

PBT(Crores)

13

PBT(Crores)

20
12
-

11
20
10
-

09
20
08
-

07
20
06
-

20
04
-

05

3500
2867
2865
2832
3000
2529
2405
2500
1781
2000
141212461410
1217
1500
1000
500
0

Growth(%)
Growth(%)

20
04
20 05
05
20 06
06
20 07
07
20 08
08
20 09
09
20 10
10
20 11
11
20 12
12
20 13
13
-1
4

80
60
59.0
40
26.3
20 13.5 16.0
19.1
13.4
13.2
0
-11.8
-11.7
-15.1
-20

The profit before tax has increased in the last 10 years, although the growth
in profit before tax has seen a rising and falling trend.

4. Profit after Tax

PAT(Crores)
2378
2232
21182109
1928

2500
2000
1500

1282

1000 810

971

858

PAT(Crores)

968

500

20
12
-

13

11
20
10
-

09
20
08
-

07
20
06
-

20
04
-

05

Growth(%)

13

Growth(%)

20
12
-

11

20
10
-

09

20
08
-

07

20
06
-

20
04
-

05

80
74.1
70
60
50
40
32.4
30
23.3
20
19.9
12.8
10 11.3
0
-0.4
-10
-10.9
-11.6
-13.6
-20

The Profit after Tax has increased since last 10 years, but the growth in profit
after tax has deteriorated.
5. Operating Margin

Operating Margin
20
16.2

15 14.6 14.6
10.8

10

11.8 12.7

11.4 10.7

Operating margin

9.6

5
20
04
20 05
05
20 06
06
20 07
07
20 08
08
20 09
09
20 10
10
20 11
11
20 12
12
20 13
13
-1
4

The operating margin has increased in Financial Year 2010, but it has
decreased to 9 in 2013 and then finally rising to 9.6 in 2014.
Bajaj Auto
1. Sales-

Sales(million units)
18.0

15.4 15.8

16.0

13.3

14.0
12.0
10.0
8.0

16.9

10.5
8.1

8.4

6.0
4.0
2.0
0.0
2008 2009 2010 2011 2012 2013 2014

Growth

sales(million units)

Growth(%)
30.0
25.0

26.8

24.5

20.0

Growth(%)
15.4

15.0
10.0

7.2

5.0 4.6
0.0
2009

2.4
2010

2011

2012

2013

2014

Revenue

Sales
25000
20727
1982720618

20000
15000
10000

16932
12118
9690 9050

5000
0
2008 2009 2010 2011 2012 2013 2014

sales

Growth
50.0
40.0
30.0

39.7
33.9
growth

20.0

17.1

10.0
4.0
0.5
0.0
2009
-6.62010 2011 2012 2013 2014
-10.0

The sales of Bajaj Auto is less than that of Hero MotoCorp. The growth in
sales has deteriorated over the years.
Operating Margin

Operating Margin
30
20
10

14.3 13.6

21.7 20.4 20.2 19.6 21.2

operating margin

0
2008 2009 2010 2011 2012 2013 2014

The operating margin has remained almost constant for Bajaj Auto since
2010. The operating margin of Bajaj Auto is more than that of Hero
MotoCorp.
PAT

PAT
4000
3340

3500

3004

3000

3044

3243

2500

PAT

2000

1704

1500
1000

756

656

2008

2009

500
0
2010

2011

2012

2013

2014

GROWTH
200.0
150.0

159.8

100.0

GROWTH

96.0

50.0
0.0
-13.2
2009
2010

2011

1.3
-10.1
2012
2013

6.5
2014

-50.0

The Profit after Tax has increased in 2010 after which it has remained almost
constant. The profit after tax has seen a declining growth since 2010. The
Profit after tax for Bajaj Auto is more than that of Hero MotoCorp.
TVS Motors
1. Sales

Sales(Crores)
6324

7992

-1
4
20

13

-1
3
12

-1
2
20

11

-1
1
20

10

-1
0
20

09

-0
9
20

08

-0
8
07
20

7193

4485

3741

3310

-0
7
20

06

-0
6
05
20

04

-0
5

2955

20

3921

3306

7163

20

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Growth
50.0
41.0

40.0
30.0
20.0

19.9

18.6

13.3

13.0

10.0 11.9

11.1

-20.0

20

13

-1
3

20

12

-1
2

20

11

-1
1

20

10

-1
0

20

-15.6

09

-0
9

20

08

-0
8
07

-0
7
20

20

06

-0
6

20

05

-10.0

-1
4

0.4

0.0

The revenue of TVS Motors is less than that of Hero MotoCorp. The growth in
the revenue has declined from 2011. The revenue has increased over the 10
years.
Profit after Tax

PAT
300

262

249

250
195

200
150 138

117

116

100

88

67
32

50

31

-1
4

-1
3

13

20

20

12

-1
2

-1
1
20

11

-1
0

10

20

20

09

-0
9

-0
8

08

20

20

07

-0
7

-0
6

06

20

05

20

20

04

-0
5

Growth
200.0

183.9

150.0
125.9

121.6
100.0
50.0
27.7

-100.0

Operating Margin

-1
4
13

-1
3

-53.4

20

20

12

-1
2

20

11

-1
1
10

-1
0
20

09

-0
9
20

-52.2

20

20

08

-0
8

-42.7

07

-0
7

20

20

-50.0

-3.1

-15.2
06

05

-0
6

0.0

13

7.3

-1
4

-1
3

7.4

20

12

6.8

-1
2

20

11

-1
1

6.6

20

10

-1
0

6.6

20

09

-0
9

6.5

20

08

-0
8

20

07

-0
7

-0
6

-0
5

10

20

06

05

04

12

20

20

20

OPERATING MARGIN

11.2
9.6

6.4

0
6.7