SNAPSHOTS

Date of Establishment 1984Revenue4633.86 ( USD in Millions )Market Cap 372926.390625 ( Rs. in Millions )Corporate Address34 Community Centre,Basant Lok Vasant Vihar, New Delhi-110057, Delhiwww.herohonda.comManagement Details

Chairperson - Brijmohan Lall Munjal MD - Pawan MunjalDirectors - Analjit Singh, Anand C Burman, Arun Nath Maira, Brijmohan Lall Munjal, Ilam C Kamboj, M Damodaran, Masahiro Takedagawa, Om Prakash Munjal, Paul Edgerley, Pawan Munjal, Pradeep Dinodia, Pritam Singh, Ravi Nath, Satoshi Matsuzawa, Shobhana Bhartia, Suman Jyoti Khaitan, Suman Kant Munjal, Sumihisa Fukuda, Sunil Kant Munjal, Takashi Nagai, Toshiaki Nakagawa, V P Malik, Ved Prakash Malik, Yuji Shiga

Business OperationAutomobile Two & Three WheelersBackground

Hero MotoCorp is the World's single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors Limited in 1984. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures wor

FinancialsTotal Income - Rs. 197421.4 Million ( year ending Mar 2011) Net Profit - Rs. 19279 Million ( year ending Mar 2011) Company SecretaryIlam C KambojBankersABN Amro Bank, Bank of America, Bank of Tokyo Mitsubishi , Canara Bank , Citi Bank, HDFC Bank, HSBC Bank, ICICI Bank, Punjab National Bank, Standard Chartered BankAuditorsAF Ferguson & Co

COMPANY HISTORY

Hero MotoCorp is the World's single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors Limited in 1984. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together. Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million two wheelers in a single month—a feat unparalleled in global automotive history.

Hero Honda became the first company in the country to introduce four-stroke motorcycles and set the standards for fuel efficiency, pollution control and quality. It has an excellent distribution and service network spread throughout the country.

Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year. These plants together are capable of producing out 4.4 million units per year.

Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, 'We pioneered India's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.''

Product range of the company includes:

CD Dawn CD Deluxe

Pleasure

Splendor +

Splendor NXG

Passion PRO

Passion Plus

Super Splendor

Glamour

Glamour PGM FI

Achiever

CBZ Extreme

Hunk

Karizma

Milestones:

1983

Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed

1984

Hero Honda Motors Ltd. Incorporated

1985

First motorcycle 'CD 100' rolled out

1987

100,000th motorcycle produced

1989

New motorcycle model - 'Sleek' introduced

1991

New motorcycle model - 'CD 100 SS' introduced 500,000th motorcycle produced

1992

Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal

1994

New motorcycle model - 'Splendor' introduced 1,000,000th motorcycle produced

1997

New motorcycle model - 'Street' introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998

2,000,000th motorcycle produced

1999

New motorcycle model - 'CBZ' introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal

2000

4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland

Splendor declared 'World No. 1' - largest selling single two-wheeler model

'Hero Honda Passport Programme' - CRM Programme launched

2001

New motorcycle model - 'Passion' introduced One million production in one single year

New motorcycle model - 'Joy' introduced

5,000,000th motorcycle produced

2002

Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row

(2000, 2001, 2002)

New motorcycle model - 'CD Dawn' introduced, New motorcycle model - 'Splendor +' introduced, New motorcycle model - 'Passion Plus' introduced, New motorcycle model - 'Karizma' introduced

2004

New motorcycle model - 'Ambition 135' introduced Hero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record

Splendor - World's largest selling motorcycle crossed the 5 million mark

New motorcycle model - 'CBZ' introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005

Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - 'Super Splendor' introduced, New motorcycle model - 'CD Deluxe'

introduced New motorcycle model - 'Glamour' introduced, New motorcycle model - 'Achiever' introduced

First Scooter model from Hero Honda - 'Pleasure' introduced

2006

Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved

2007

Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched

20 million production milestone achieved

2008

Hero Honda Haridwar Plant inauguration New 'Pleasure' launched

Splendor NXG launched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched

25 million production milestone achieved

CD Deluxe launched with power start feature

New 'Glamour' launched

New 'Glamour Fi' launched

2009

Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark

New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

2010

New model Splendor Pro launched Launch of new Super Splendor and New Hunk

2011

New licensing arrangement signed between Hero and Honda Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma

Crosses the landmark figure of 5 million cumulative sales in a single year

July 29, 2011 - Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company

Achievements/ recognition:-

2011

Two-wheeler Manufacturer of the Year award by Bike India magazine Adjudged the 'Bike Manufacturer of the Year' at the Economic Times ZigWheels Car and Bike

Awards

2010

Rated as Top Indian Company in Automobile - Two Wheelers sector by Dun & Bradstreet - Rolta Corporate Awards 2009

Most Preferred Brand of Two-Wheelers' award at the CNBC Awaaz Consumer Awards.

Adjudged at top of the two-wheeler category in the Brand Equity Most Trusted Brands 2010 Survey

Ranked No. 3 Most Trusted Brand across categories amongst Young Adult Males

Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-09

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 - Two-wheeler Manufacturer of the Year, CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR) and Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009'

2009

'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector bythe Dun & Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008

NDTV Profit Business Leadership Award 2008

TopGear Design Awards 2008

NDTV Profit Car India & Bike India Awards

IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards

Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation)

NDTV Profit Car India & Bike India Awards

Overdrive Magazine

TNS Voice of the Customer Awards

2007

The NDTV Profit Car India & Bike India Awards 2007  

2006 

Corporate Social Responsibility Award Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American

Express Corporate Awards 2006

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006

NDTV Profit Car India & Bike India Awards 2006

2005 

Awaaz Consumer Awards 2005 Bike Maker of the Year Award by Overdrive Magazine

2004 

Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies)

ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 

2003 

Winner of the Review 200

Most Respected Company in Automobile Sector by Business World

Bike Maker of the Year by Overdrive Magazine. 

2002

Bike Maker of the Year by Overdrive Magazine Winner of the Review 200 Company of the Year of ET Awards for Corporate Excellence.

2001 

Bike Maker of the Year by Overdrive Magazine Winner of Three Leaves Award for showing Corporate Environment Responsibility in the

Automobile Sector by Centre for Science & Environment

Business School Award for Corporate Performance to Hero Honda Motors Ltd.

And many more..

KEY EXECUTIVES

S.No Name Designation

1 Brijmohan Lall Munjal Chairman

2 Ilam C Kamboj Company Secretary

3 Suman Kant Munjal Non Executive Director

4 Paul Edgerley Non Executive Director

5 Sunil Kant Munjal Joint Managing Director

6 Pawan Munjal Managing Director & Chief Executive Officer

7 V P Malik Non Executie & Independent Director

8 Analjit Singh Non Executie & Independent Director

9 Pritam Singh Non Executie & Independent Director

10 M Damodaran Non Executie & Independent Director

11 Ravi Nath Non Executie & Independent Director

12 Anand C Burman Non Executie & Independent Director

13 Pradeep Dinodia Non Executive Independent Director

COMPETITORS:

CompanySales

(Rs.Million)

CurrentPrice

Change (%)

P/E Ratio

MarketCap.

(Rs.Million)

52-WeekHigh/Low

Bajaj Auto 159981.20 1466.65 0.82 12.06 422794.151822/119

0

Hero MotoCorp 192450.30 1899.00 2.25 17.83 372926.392248/137

8

TVS Motor 61794.80 50.00 1.73 10.12 23564.32 70/44

Maharashtra

Scooters61.96 308.00 -1.00 103.32 3564.57 395/275

Scooters India 1599.88 31.85 -2.00 0.00 1410.15 54/24

Kinetic Engg 906.89 90.00 -4.56 0.00 990.52 194/77

Atul Auto 2015.87 112.25 -2.39 6.60 841.15 132/77

Majestic Auto 1522.57 61.20 -4.15 5.09 675.84 103/53

LML 3450.58 8.00 1.78 0.00 659.15 13/7

Kinetic Motors 4.56 13.65 2.17 63.70 356.72 27/10

VCCL 0.00 4.76 0.00 0.00 22.85 7/5

PRODUCTS:

Product Name YearMont

hSales

Quantity

Sales Value(Rs.Million

)% of STO

Motorised Two

Wheeler upto 350 cc2011 03 5402444.00 193749.90 93.77

Spares 2011 03 0.00 12874.00 6.23

TERMINATION OF HEROHONDA JOINT VENTURE

In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff Olins The logo was revealed on 9 August 2011 in London, the day before the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West AsiaHero is free to use any vendors for its components instead of just Honda-approved vendors.

Company performance

During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda Splendor sells more than one million units per year.

Recognition

Logo of Hero Honda, as the company was known till Aug. 2011

The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 13th position among the brands in India.

Motorcycle models

Sleek Achiever

Ambition 133, Ambition 135

CBZ, CBZ Star, CBZ Xtreme

CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I

Hunk

Karizma , Karizma R, Karizma ZMR FI

Passion , Passion+, Passion Pro

Pleasure

Splendor , Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG,Splendor PRO

Suppliers

It is reported Hero Honda has five joint ventures or associate companies, Munjal Showa, AG Industries , Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority of its components.

Hero Honda ≠ Hero Motocorp

By now, the vast majority of the people exposed to mainstream multimedia are already aware of Hero group and Honda Motorcorp’s divorce last year and the subsequent solo journey of the Munjals that began in earnest last week.

This blog’s primary motto has been to raise and simplify issues related to cars in general, but this week, I choose to make an exception. Hero Honda was not a company that made cars but like Maruti, it had its roots in the pre liberalisation era that abhorred competition and quality. But like Maruti, it played a big role in the growth of the Indian automotive industry as it became the world’s largest two wheeler maker by the turn of the century. It will be a farce not to look back at that journey and speculate on the way forward.

Hero and HondaBack in 1983, when Hero Group controlled by the Munjals centred in Punjab and Honda Motor Corp of Japan sat down to sign a joint collaboration agreement, the two firms were as different as chalk and cheese.

Hero was a desi company that had mastered the art of making bicycles and was looking to graduate to the next step. Honda was already the giant in the global automobile industry, a technology and quality driven company that has few parallels.

The two firms had one common belief, that India with its bulging population, low per capita income and pathetic public transport system would be in need for frugal means of personal transportation. And they knew that together they can provide it like nobody else.

Hero with its inherent knowledge of how to sell products in India was the champion in marketing and sales. Honda was the undisputed leader in two wheeler technology worldwide. This marriage was made in heaven.

The magic of SplendorThough the journey began with the frugal 4 stroke 100cc motor bike CD 100 in the 80s, the Hero Honda story really started gathering momentum when in 1994, it launched the Splendor.

This bike was a significantly more improved version of the CD 100 and offered a fuel efficiency of more than 70 kmpl. The market then was dominated by scooters made by Pune based Bajaj and the Splendor’s tag line of fill it, shut it, forget it, aimed centrally at the relatively poor fuel consumption figures of a scooter.

What helped the bike’s cause was also the young population in college which was exposed to the winds of globalisation. No longer was a bicycle the preferred mode of transport for students in college and Splendor quickly took over that segment.

But no product in the competitive automotive space can withstand the test of time only with lever marketing and branding. Honda’s might in two wheeler engine technology worldwide paid dividends and Splendor proved to be as easy to maintain as it was to run. It rarely complained when abused, was sprightly and sporty and returned excellent fuel economy figures.

It may be a hard core biker’s nightmare, but even today after being on the roads for 17 years Splendor does the job of ferrying around the country like no other. By the turn of the century it became the world’s largest selling motorcycle and by 2002 it catapulted Hero Honda to the top, a position it has withheld ever since. The Splendor remains one of the largest selling motorcycles in India with sales of over 1 million units per year.

The differencesEven though, the two companies complemented each other very well, there were quite a few areas of discord that often fuelled rumours of an imminent split. Initial the joint venture agreements between the two firms that were renewed after every 10 years, itself prohibited Honda to sell motorcycles on its own. This was one reason why it had to enter India first as a scooter manufacturer in 1999 (Honda Motorcycle and Scooter India) and even for that it had to reach a consensus with the Munjals.

Hero Honda could never build its own research and development capabilities as Honda, which had a 26% share (the same as the other promoters Munjals) would always argue the rationale when technology was being provided by it in anycase. The company could also not spread its wings and look at exports as that would cannibalise Honda’s own global export strategy from Japan. As things panned out, export of two wheelers took off in a big way since 2005, which has been well exploited by rivals Bajaj and TVS. This did not go down well with the Munjals.

The differences escalated further when after renewing the technical collaboration agreement in 2004, Honda decided to get into motorcycles with the 150cc Unicorn. This was the first time that a Honda bike was competing directly with a Hero Honda (CBZ). Even though, Honda promised to keep off the commuter segment (100-110cc) that accounted for the bulk of the sales in India and where Hero Honda was the strongest, relations between the two promoters was deteriorating.

The relations between the two partners reached a flashpoint after Honda suffered one of the cases of labour unrest in the country at its Manesar factory in the summer of 2005. Though it could never substantiate it, the Japanese officials at Honda who were also on the board of Hero Honda suspected the hand of Munjals behind every instance of labour strife HMSI suffered between 2005 and 2010.

With both holding grouses against each other while growing more confident and ambitious of their own capabilities, a divorce was duly executed in December 2010.

What nextHero Honda may become Hero Motocorp but the two companies would never be the same. Hero would get to use Honda technology till 2014 as also keep ubiquitous brands like Splendor, Passion and Glamour but eventually its bikes would be powered by technology that is developed in house.

Unlike cars, two wheelers do not boast of very complex engine technologies that keeps upgrading itself in short cycles, especially in the case of low cost commuter bikes. Further, the demand for two wheelers elsewhere in the world is such, that some of these technologies is available at very attractive prices all over Europe.

Even then, it will be difficult for the Munjals to either develop or buy technology as advanced and reliable as the one that has powered all its bikes till date. It will use its muscle of marketing and low cost servicing, two very critical aspects in a country as geographically wide as India, to the full but should Honda be able to develop a revolutionary low cost technology for emerging markets in the near future, Hero would have its hands full.

For Honda, it will be a very steep learning curve for the next few years. Hero Honda no longer exists and what remains at its place is a very stern and ruthless competitor, one that uses its own basic edifice.

Honda also does not have the marketing prowess of Hero and would take its time to shore up its dealer network. To their advantage, the Indian consumer recognises what Honda brings to the table and is knowledgeable enough that the technology that powers the Splendor they ride everyday is courtesy them. Whether HMSI can act smartly enough and press than advantage fully would be critical.

The Munjals would like everybody to believe that Hero Motocorp is the same as Hero Honda, the sad reality is it is not true. What we have in its place instead are two companies with their own strengths and weaknesses. Individually Hero and Honda’s strengths do not match up to those of the erstwhile Hero Honda. Instead the two firms are much weaker than what Hero Honda ever was.

McKenzie 7S framework

The organization is not just the structure; rather it is made up of seven elements, shown above. These are divided into two types: Hard and Soft. Elements in green are hard; they are easy to identify and feasible. They can be found in strategy elements, corporate plans, organizational structures and other documentations. The soft elements are hard to describe. They are sort of intangible. Hence it is more difficult to plan or influence these elements.

Effective organizations achieve a fit between all these seven elements. If one element changes then this will affect all the others. For example, a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes, and finally characteristic competences of the organization.In any change process in an organization, more focus is given on hard S’s and often soft S’s are ignored. This is not a good strategy. It is difficult to build new structures and strategies upon inappropriate cultures and values. Many M&A fail because of the clash of culture, value and style.

Hence 7S model is an effective tool in initiating change process in the organization. One should look at the current status of these seven elements in the organization and compare with the ideal state. Then make and plan and implement them.

Let us describe these elements one by one:

Balance Sheet of Hero Motocorp

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 39.94 39.94 39.94 39.94 39.94

Equity Share Capital 39.94 39.94 39.94 39.94 39.94

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 2,916.12 3,425.08 3,760.81 2,946.30 2,430.12

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 2,956.06 3,465.02 3,800.75 2,986.24 2,470.06

Secured Loans 1,458.45 0.00 0.00 0.00 0.00

Unsecured Loans 32.71 66.03 78.49 132.00 165.17

Total Debt 1,491.16 66.03 78.49 132.00 165.17

Total Liabilities 4,447.22 3,531.05 3,879.24 3,118.24 2,635.23

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 5,538.46 2,750.98 2,516.27 1,938.78 1,800.63

Less: Accum. Depreciation 1,458.18 1,092.20 942.56 782.52 635.10

Net Block 4,080.28 1,658.78 1,573.71 1,156.26 1,165.53

Capital Work in Progress 125.14 48.14 120.54 408.49 189.92

Investments 5,128.75 3,925.71 3,368.75 2,566.82 1,973.87

Inventories 524.93 436.40 326.83 317.10 275.58

Sundry Debtors 130.59 108.39 149.94 297.44 335.25

Cash and Bank Balance 47.75 1,863.48 217.49 130.58 35.26

Total Current Assets 703.27 2,408.27 694.26 745.12 646.09

Loans and Advances 783.48 438.46 325.80 196.37 268.04

Fixed Deposits 23.77 43.73 2.08 0.51 0.52

Total CA, Loans & Advances 1,510.52 2,890.46 1,022.14 942.00 914.65

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 5,316.40 3,965.69 1,678.93 1,455.57 1,171.50

Provisions 1,081.07 1,026.35 526.97 499.76 437.24

Total CL & Provisions 6,397.47 4,992.04 2,205.90 1,955.33 1,608.74

Net Current Assets -4,886.95 -2,101.58 -1,183.76 -1,013.33 -694.09

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 4,447.22 3,531.05 3,879.24 3,118.24 2,635.23

Contingent Liabilities 131.90 73.04 100.54 56.37 165.59

Book Value (Rs) 148.03 173.52 190.33 149.55 123.70

Profit & Loss account of Hero Motocorp

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 20,787.27 16,856.43 13,553.23 12,048.30 11,553.47Excise Duty 1,420.30 1,016.85 1,227.85 1,703.29 1,647.52

Net Sales 19,366.97 15,839.58 12,325.38 10,345.01 9,905.95Other Income 238.27 290.69 222.14 216.30 197.68Stock Adjustments 27.00 -11.54 22.09 -14.14 3.20Total Income 19,632.24 16,118.73 12,569.61 10,547.17 10,106.83ExpenditureRaw Materials 14,236.45 10,822.99 8,842.14 7,465.36 7,255.66Power & Fuel Cost 100.47 81.05 73.70 56.55 52.45Employee Cost 618.95 560.32 448.65 383.45 353.81Other Manufacturing Expenses 409.89 454.36 354.08 304.11 280.17Selling and Admin Expenses 1,090.72 885.03 669.98 563.27 558.99Miscellaneous Expenses 340.42 280.64 205.90 190.36 206.11Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 16,796.90 13,084.39 10,594.45 8,963.10 8,707.19

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 2,597.07 2,743.65 1,753.02 1,367.77 1,201.96PBDIT 2,835.34 3,034.34 1,975.16 1,584.07 1,399.64Interest 28.20 11.14 13.04 13.47 13.76PBDT 2,807.14 3,023.20 1,962.12 1,570.60 1,385.88Depreciation 402.38 191.47 180.66 160.32 139.78Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 2,404.76 2,831.73 1,781.46 1,410.28 1,246.10Extra-ordinary items 0.00 0.00 0.00 0.00 0.00PBT (Post Extra-ord Items) 2,404.76 2,831.73 1,781.46 1,410.28 1,246.10Tax 476.86 599.90 499.70 442.40 388.21Reported Net Profit 1,927.90 2,231.83 1,281.76 967.88 857.89Total Value Addition 2,560.45 2,261.40 1,752.31 1,497.74 1,451.53Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 2,096.72 2,196.56 399.38 379.41 339.47Corporate Dividend Tax 340.14 371.00 67.87 64.48 57.69Per share data (annualised)Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88 1,996.88 1,996.88Earning Per Share (Rs) 96.55 111.77 64.19 48.47 42.96Equity Dividend (%) 5,250.00 5,500.00 1,000.00 950.00 850.00Book Value (Rs) 148.03 173.52 190.33 149.55 123.70

Cash Flow of Hero Motocorp

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 2404.76 2831.73 1781.46 1410.28 1246.10Net Cash From Operating Activities 2288.11 2686.64 1359.03 1211.78 625.05Net Cash (used in)/fromInvesting Activities

-1322.31 -527.63 -861.19 -781.01 -273.13

Net Cash (used in)/from Financing Activities -989.18 -2109.31 -499.93 -432.33 -474.34Net (decrease)/increase In Cash and Cash -23.38 49.70 -2.09 -1.56 -122.42

EquivalentsOpening Cash & Cash Equivalents 62.61 13.45 15.19 16.66 158.72Closing Cash & Cash Equivalents 39.23 63.15 13.10 15.10 36.30