Hero Honda: 'Splendor' in 2Q numbers - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Hero Honda: 'Splendor' in 2Q numbers

Oct 17, 2001

Hero Honda has beaten market expectations by reporting a 63% jump in second quarter profits. The company's topline too grew impressively by 41%. A slew of new launches including the likes of ‘Passion’ (a substitute for Splendor), ‘Joy’ (the low end segment) and ‘CBZ’ (the premium segment) have performed extremely well, pushing up the volume growth.

(Rs m)2QFY012QFY02Change1HFY011HFY02Change
Sales 7,394 10,385 40.5% 14,676 19,905 35.6%
Other Income 65 171 160.7% 142 200 40.5%
Expenditure 6,445 8,924 38.5% 12,784 17,110 33.8%
Operating Profit (EBDIT) 949 1,461 54.0% 1,893 2,794 47.6%
Operating Profit Margin (%)12.8%14.1% 12.9%14.0% 
Interest 6 4 -26.8% 14 8 -40.0%
Depreciation 115 111 -4.1% 211 252 19.6%
Profit before Tax 893 1,517 69.8% 1,811 2,734 51.0%
Tax 291 533 83.5% 605 963 59.1%
Profit after Tax/(Loss) 603 983 63.2% 1,206 1,772 46.9%
Net profit margin (%)8.2%9.5% 8.2%8.9% 
No. of Shares (eoy) (m) 199.7 199.7   199.7 199.7  
Diluted number of shares 199.7 199.7   199.7 199.7  
Earnings per share (Rs)* 12.1 19.7   12.1 17.7  
(*annualised)      

The company's earnings growth in the current quarter was inflated by higher other income (profit on sale of investments). Excluding other income figure from the respective quarters, profits have actually grown by 51%. Similarly, tax provision jumped by 84% on account of provision for deferred tax liability according to AS-22.

Segment-wise revenue…
Category2QFY021HFY02
Motorcycles95.1%95.6%
Spares4.9%4.4%
Total100.0%100.0%

Among other developments, the company declared dividend of Rs 5 per share (on a face value of Rs 2 per share). It has also increased the FII investment limit to 40%. These factors coupled with its strong performance are likely to drive up Hero Honda's stock price. At the current market price of Rs 206, Hero Honda is trading at a P/E of 10x 2QFY02 annualised earnings.

Equitymaster requests your view! Post a comment on "Hero Honda: 'Splendor' in 2Q numbers". Click here!

  

More Views on News

HERO MOTOCORP 2020-21 Annual Report Analysis (Annual Result Update)

Oct 19, 2021 | Updated on Oct 19, 2021

Here's an analysis of the annual report of HERO MOTOCORP for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of HERO MOTOCORP. Also includes updates on the valuation of HERO MOTOCORP.

Hero MotoCorp Reports Substantial Rise in Net Profit. Is it Worth a Look? (Views On News)

Aug 13, 2021

The company improved its market share in the quarter by more than 2%. Can it achieve more?

Hero MotoCorp Q4 Net Profit Jumps Over 40% On Strong Operating Performance (Views On News)

May 7, 2021

The company's EBITDA jumped 78.8% YoY on account of cost saving initiatives to offset higher commodity prices and input costs.

Hero MotoCorp's Manufacturing Halt and Electric Vehicle Shift (Company Info)

Apr 22, 2021

Key reasons why the stock of Hero MotoCorp is in focus today.

HERO MOTOCORP Announces Quarterly Results (3QFY21); Net Profit Up 23.2% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, HERO MOTOCORP has posted a net profit of Rs 11 bn (up 23.2% YoY). Sales on the other hand came in at Rs 98 bn (up 39.7% YoY). Read on for a complete analysis of HERO MOTOCORP's quarterly results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

HERO MOTOCORP SHARE PRICE


Dec 3, 2021 (Close)

TRACK HERO MOTOCORP

  • 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

HERO MOTOCORP 8-QTR ANALYSIS

COMPARE HERO MOTOCORP WITH

MARKET STATS