Total sales for the quarter stands at  14,16,276 units

Total turnover (Net sales and other operating income) Rs. 5726 Crore

Profit Before Tax (PBT) stands at Rs.658 crore

Net Profit After Tax (PAT) stands at Rs 481crore

EBIDTA margin for the quarter at 14.5 per cent

“With our performance in the second quarter (July-September) of FY’14, we have clearly demonstrated that we can have good margins even as we strengthen our market leadership. When we commenced our solo journey a little over two years ago, protecting our market share was the top-most priority. Having achieved that, our strategy now clearly is to build on that leadership and make our business more profitable through several innovations, including a cost rationalization initiative. The results are already showing. Going forward, as we move to consolidate our leadership through technology, innovation and youth-focused products, we will certainly strive to keep improving our profitability as well.

“These numbers bode well for the festive season. The sentiments are positive and there is a momentum for us in the market, and we are definitely looking at demonstrating our leadership by record dispatch and retail sales during the festive period.

“The country, however, is passing through a very challenging time, which is also reflected in the sluggishness in the industry. The Rupee depreciation, which has adversely impacted several sectors, has also pulled up the costs of essential commodities such as steel, nickel, copper and rubber. Going forward, these higher input prices, combined with increasing labour costs, are likely to put a lot of pressure on margins in the industry. We will, therefore, be innovative in tackling these cost pressures to protect our margins.”

PAWAN MUNJAL

Managing Director & Chief Executive Officer

Making an impressive entry into the festive season, Hero MotoCorp Ltd. (HMCL), the world’s largest two-wheeler manufacturer, today reported strong results for the second quarter (July-September) of this financial year (FY 2013-14).

With sales of 14,16,276 two-wheelers in Q2 FY’14, the company registered a total turnover (Net Sales & other Operating Income) of Rs 5726 crore and net profit after tax (PAT) of Rs 481 crore. HMCL had reported a total turnover of Rs. Rs.5187 and PAT of Rs 441 crore in the corresponding quarter in the previous fiscal (2012-13). EBIDTA margin (Earnings Before Interest, Depreciation & Amortaization) for the second quarter (July-September) of this financial year (FY 2013-14) stood at 14.5 per cent.

The cumulative sales for first half of the year (April-Sept’13) stands at 29,75,558 two-wheelers. The company registered a total turnover (Net Sales & other Operating Income) of Rs 11,886 crore and net profit after tax (PAT) of Rs 1,030 crore in this period. HMCL had reported a total turnover of Rs. Rs.11,435 and PAT of Rs 1,056 crore in the corresponding period in the previous fiscal (2012-13). EBIDTA margin (Earnings Before Interest, Depreciation & Amortaization) for the first half (FY 2013-14) stood at 14.7 per cent.

The Q2 of FY’14 marked several milestones in Hero MotoCorp’s journey towards next-generation technological excellence.

Demonstrating Technological Excellence & Innovation through ‘15 new offerings’

In a reiteration of its capability to develop indigenous technologies, HMCL recently showcased next-gen features to be introduced in its new product line-up, namely, i3S Technology (Idle Stop & Start System) for two-wheelers which will soon make its debut in the all-new Splendor iSmart; Integrated Braking System (IBS) that is being introduced in the all-new Pleasure and Electronic Immobiliser which will debut on the new 150cc Xtreme. Hero has filed for patents for these technological innovations.

Apart from these offerings, HMCL also showcased a series of radical refreshes and variants of existing platforms that include technologically superior & internationally styled Karizma & ZMR, the new 100-cc HF Dawn, HF Deluxe & HF Deluxe Eco; the New 100-cc Splendor Pro and  125-cc Super Splendor;  new 100cc Passion Pro, Glamour & Glamour FI. All these models have been re-designed keeping in mind Hero’s philosophy of SafeTech, StyleTech and Innovation.

The “game-changing” Hero Centre of Global Innovation and R&D

HMCL recently commenced construction of its Rs 450 Crore “Hero Centre of Global Innovation and Research & Design (R&D)” at Kukas, on the outskirts of Jaipur in Rajasthan. Once operational, HMCL’s current R&D centres, located at the Gurgaon and Dharuhera factories, will shift to ‘Hero Centre of Global Innovation and R&D’ – thus creating a nucleus for the key technological functions.

A NEW vision for a NEW Hero

With HMCL fast augmenting its presence globally and further strengthening its leadership in the domestic market, the company unveiled a global vision for brand ‘Hero’- to be achieved by year 2020:

•             Surpass 100 million units in cumulative production

•             Annual bike and scooter sales of 12 million

•             More than 20 manufacturing and assembly plants across the globe

•             Sales in more than 50 countries

•             Turnover of Rs 60,000 crore

Robust Globalisation Strategy

In July 2013, Hero MotoCorp began its quest in Africa with the launch of brand Hero in Kenya, Burkina Faso and Ivory Coast. HMCL has also set-up its first international assembly unit at Nairobi in Kenya. The company followed it with the launch of operations in Peru in Latin America. As of today, Hero two-wheelers sell in 11 markets across the globe – Peru in Latin America; Guatemala, Honduras & El Salvador in Central America; Columbia in South America; Kenya in East Africa; Burkina Faso and Ivory Coast in West Africa, Sri Lanka, Nepal and Bangladesh in Asia)

Hero Mileage

Hero MotoCorp introduced an innovative campaign titled “Hero Mileage” during the second quarter, capturing Hero’s best-in-class fuel-efficiency across its product range; and the tagline – “Thoda Extra Kilometer Per Litre” – has gone on to become part of the youth lingo in a very short time.

Source : Shiva Kumar