Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Hero Honda QFY2000 net surges by 44% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 13, 1999

    Hero Honda QFY2000 net surges by 44%

    Robust motorcycle sales have boosted Hero Honda's 2QFY2000 net to Rs 429 m (43.8% year on year rise). This was revealed by newspaper reports.

    Hero Honda, a joint venture between the Munjals and Honda Motors, is India's leading manufacturer of motorcycles (39% market share in September).

    Hero Honda's 44% net profit growth is attributed to a 33% rise in motorcycle sales (from 132,968 in 2QFY99 to 176,860 in 2QFY2000).

    The company's 1HFY2000 figures are even more impressive with net profit appreciating by 54% to Rs 813 m (Rs 527 m in 1HFY99). 1HFY2000 turnover posted 46.3% increase to Rs 10.4 bn (Rs 7.1 bn). Again this is attributed to higher motorcycle sales, which shot up by 37.2% in 1HFY2000 to 338,326 units (246,536 units).

    (Rs m) 2QFY2000 2QFY1999 Change
    Sales 5,478 3,819 43%
    Other Income 24 48 -50%
    Turnover 5,502 3,867 42%
    Expenditure 4,785 3,383 41%
    Interest 16 19 -15%
    Depreciation 77 55 39%
    PBT 624 410 52%
    Tax 196 112 74%
    Net Profit 429 298 44%

    The company has targeted motorcycle sales of 700,000 units, and sales turnover of Rs 20 bn, for FY2000. Given the company's performance so far, the motorcycle sales figure looks achievable, although the Rs 20 bn sales target may seem a little ambitious.

    With the company's plan to launch at least two motorcycle models every year, it seems well-prepared to take on competition from existing players (TVS Suzuki, Bajaj Auto), and future entrants (LML, Honda). Its market share has risen consistently over the years, but it cannot rest easy as competitors (Bajaj Auto, TVS Suzuki) continue to innovate and offer better products. With all three companies having technological tie-ups with Japanese manufacturers, future launches will vie for market share on technology as well as fuel-efficiency.

    Market view:
    Analysts have flagged the stock as a 'BUY', as the company has been riding the motorcycle boom with well-acknowledged brands, and future launches will help it sustain market share, if not enhance it.



    Equitymaster requests your view! Post a comment on "Hero Honda QFY2000 net surges by 44%". Click here!


    More Views on News

    Hero Motocorp Ltd: Riding on the Scooters Growth, Maintains Margins! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Good Recovery in the Scooters market, expects pick up in exports too.

    Hero Motocorp Ltd: Finishes the year with multiple Headwinds. What next? (Quarterly Results Update - Detailed)

    May 22, 2017

    Hero Motocorp ltd has announced its financial results for the fourth quarter of the financial year 2016-17 (4QFY17). During the quarter, revenues were

    Hero Motocorp Ltd: Volumes Disappoint (Quarterly Results Update - Detailed)

    Feb 20, 2017

    Hero Motocorp ltd has announced its financial results for the third quarter of the financial year 2016-17 (3QFY17).

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in HERO MOTOCORP with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts