HERO MOTOCORP 2024-25 Annual Report Analysis

Tue, 15 Jul

HERO MOTOCORP has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

HERO MOTOCORP Income Statement Analysis

• Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY25 as against 13.0% in FY24.
• Depreciation charges increased by 8.0% and finance costs decreased by 7.5% YoY, respectively.
• Other income grew by 20.5% YoY.
• Net profit for the year grew by 16.9% YoY.
• Net profit margins during the year grew from 9.9% in FY24 to 10.7% in FY25.

HERO MOTOCORP Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	377,886	409,234	8.3%
Other income	Rs m	8,668	10,441	20.5%
Total Revenues	Rs m	386,554	419,675	8.6%
Gross profit	Rs m	48,988	56,068	14.5%
Depreciation	Rs m	5,990	6,467	8.0%
Interest	Rs m	764	707	-7.5%
Profit before tax	Rs m	50,902	59,336	16.6%
Tax	Rs m	13,480	15,578	15.6%
Profit after tax	Rs m	37,422	43,758	16.9%
Gross profit margin	%	13.0	13.7
Effective tax rate	%	26.5	26.3
Net profit margin	%	9.9	10.7

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HERO MOTOCORP Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 75 billion as compared to Rs 70 billion in FY24, thereby witnessing an increase of 6.1%.
• Current assets rose 30% and stood at Rs 134 billion, while fixed assets fell 4% and stood at Rs 164 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 299 billion as against Rs 274 billion during FY24, thereby witnessing a growth of 9%.

HERO MOTOCORP Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	176,533	192,282	8.9
Current Liabilities	Rs m	70,484	74,760	6.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	274,315	298,559	8.8
Current assets	Rs m	103,155	134,339	30.2
Fixed Assets	Rs m	171,160	164,220	-4.1
Total Assets	Rs m	274,315	298,559	8.8

HERO MOTOCORP Cash Flow Statement Analysis

• HERO MOTOCORP's cash flow from operating activities (CFO) during FY25 stood at Rs 43 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -17 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -28 billion on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -2 billion from the Rs 4 billion net cash flows seen during FY24.

HERO MOTOCORP Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	49,231	42,974	-12.7%
Cash Flow from Investing Activities	Rs m	-18,279	-17,034	-
Cash Flow from Financing Activities	Rs m	-27,166	-28,154	-
Net Cash Flow	Rs m	3,786	-2,214	-

Current Valuations for HERO MOTOCORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 218.8, an improvement from the EPS of Rs 187.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,414.7, stands at 19.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 19.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	1,890.2	2,046.1
TTM Earnings per share	Rs	187.2	218.8
Diluted earnings per share	Rs	187.1	218.8
Price to Cash Flow	x	21.7	19.3
TTM P/E ratio	x	24.4	19.5
Price / Book Value ratio	x	4.2	5.0
Market Cap	Rs m	735,057	970,082
Dividends per share (Unadj.)	Rs	140.0	165.0

Ratio Analysis for HERO MOTOCORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY25, from 1.5x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 85.0x during FY25, from 67.7x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 22.8% during FY25, from 21.2% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 31.2% during FY25, from 29.3% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 14.9% during FY25, from 13.9% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	1.5	1.8
Debtors’ Days	Days	3	3
Interest coverage	x	67.7	85.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.9	14.9
Return on equity	%	21.2	22.8
Return on capital employed	%	29.3	31.2

To see how HERO MOTOCORP has performed over the last 5 years, please visit here.

HERO MOTOCORP Share Price Performance

Over the last one year, HERO MOTOCORP share price has moved down from Rs 5,605.7 to Rs 4,414.7, registering a loss of Rs 1,191.1 or around 21.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 53,519.6 (up 1.5%). Over the last one year it has moved down from 57,662.6 to 53,519.6, a loss of 4,143 points (down 7.2%).

Overall, the S&P BSE SENSEX is up 3.5% over the year.

(To know more, check out historical annual results for HERO MOTOCORP and quarterly results for HERO MOTOCORP)