Hero Honda awards and accolades

Riding on its highest-ever quarterly sales of 1.2 million, Hero Honda Motors Ltd (HHML), the world’s largest two-wheeler manufacturer, today announced its first quarter (April-June) results for the Financial Year (FY) 2010-11, with continued market leadership and steady growth.

The Q1’11 also marked the fifth consecutive quarter registering sales of over one million two-wheeler units.

Fuelled by its all-time high monthly sales of 4.35 lakh unist (in May) and yet another four-lakh plus sales in June, Hero Honda registered a total turnover (Net Sales & Other Operating income) of Rs 4296.61crores. The company’s turnover was Rs 3829.16 crores in the corresponding period last fiscal.

The company reported profit after tax (PAT) of Rs 491.69 crores and EBIDTA margin of 14%, in the face of a steep rise in commodity prices in the first half of the quarter and additional expenditure incurred on account of conversion to new emission norms. The company’s PAT for the corresponding period last fiscal (April – June’ 09-10) was Rs 500.11 crores

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “The value systems ingrained in the very foundations of Hero Honda’s culture combined with our strong partnerships, dealer network, joint venture partners as well as customers’ confidence have continued to drive our success in the market. We are committed to adhering to the highest standards, and will continue to strive towards achieving new landmarks and milestones.”

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd said, “It has been a record quarter of highest-ever numbers, and we could have done even better but for the short supply of some components. On the other hand, it was a challenging quarter for the bottom line due to the rise in commodity prices. Switching over to the new emission norms also added to the expenditure, even as we witnessed substantial increase in input costs in the first half of the quarter.

“Going forward, we are striving to meet continuously rising demand of our products in the market. Accordingly, we are scaling up production in our existing plants to meet the expected market demand.”

Q1 of FY ‘11 witnessed growth from all segments of Hero Honda models. The refreshed models of Glamour and Glamour FI – introduced in April’10 are doing very well in the deluxe segment. Sales of Pleasure have also recorded a growth of over 50 per cent and have crossed the threshold of 25,000 unit sales per month.

Hero Honda, as the Presenting Partner of the Queens Baton Relay, and a Partner of the XIX Commonwealth Games Delhi 2010, has initiated a slew of programmes to generate the spirit of sports and connect with customers across the country.

In yet another validation of Hero Honda’s popularity amongst its customers, the company recently won the “Most Preferred Brand of Two-Wheelers” award at the CNBC Awaaz Consumer Awards.

HERO HONDA POSTS RECORD ANNUAL REVENUES AND BOTTOM LINE FOR FISCAL 2010

TOTAL CUMULATIVE SALES CROSS THREE CRORE

REPORTS REVENUES (NET SALES & OTHER OPERATING INCOME)
OF RS. 4122.32 CRORES, NET PROFIT AFTER TAX OF RS. 598.81 CRORES & EBIDTA MARGIN OF 17.2 % IN Q4

Financial Results for Q4, FY’10

  • Total sales for Q4 stands at  11,86,536 units, growth of 18.9 per cent
  • Total turnover (Net sales and other operating income) Rs. 4122.32 crores, growth of      20.2 per cent
  • Net profit after tax at Rs. 598.8 crores, growth of 48.9 per cent
  • EBIDTA margin for the quarter 17.2 per cent

Financial Results for FY’10

  • Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
  • Total turnover (Net sales and other operating income) of Rs. 15860.51 Crores, growth of  28.1 per cent
  • Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
  • Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
  • EBIDTA margin for the year 17.4  per cent
  • EPS of Rs. 111.77, growth of 74.1  per cent

New Delhi, April 19, 2010: Hero Honda Motors Ltd (HHML), world’s largest two-wheeler manufacturer for nine consecutive years, today reported record financial results for FY’10 with its highest-ever annual revenues, operating income and earnings per share.

The company’s total turnover (Net sales and other operating income)  grew to Rs 15860.51 crores, a growth of 28.1per cent over Rs. 12382.25 crores recorded over the last fiscal. The company has recorded an EBIDTA margin of 17.4 per cent in this fiscal. The EBIDTA margin in the previous year (08-09) was 14.1 per cent.

Riding on robust sales growth of 18.9 per cent in the fourth quarter, Hero Honda’s total turnover (Net Sales & other Operating Income) grew to Rs. 4122.32 crores, a growth of    20.1 per cent over Rs.3430.41 crores, recorded in the corresponding quarter in last fiscal. EBIDTA margin for the quarter stood at a healthy  17.2  per cent.

Celebrating the strength of its operations and the resulting strong financial position, Hero Honda had recently announced a Special Silver Jubilee Dividend of 4000% or Rs 80 on each share of Rs 2 face value, which totals to a payout of Rs. 1869 crores. The dividend in percent­age terms is the highest pay out by an Indian compa­ny to date.

Hero Honda has crossed yet another significant milestone – the total cumulative sales landmark of 30 million of two-wheelers. The company crossed this milestone in the month of March, 2010.

Hero Honda also crossed the landmark million units in sales in each quarter of fiscal ’10, capping it off with the highest-ever quarter sales of 11,86,536 units in the fourth quarter.

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “Hero Honda’s strong foundation, value system and partnership with key stakeholders have been the key to the company’s continued success. These have engendered a growth culture within the company, which gives us a strong momentum in the market place. As in the past, we will continue to strive for further excellence in our pursuit of greater heights.”

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd said, “We are delighted with our outstanding full-year results with the highest ever annual revenues and EPS growth. We’re also pleased to be able to celebrate this excellent financial performance with our shareholders through a Special Silver Jubilee Dividend.

“Having closed the financial year ’10 with sales of 4.6 million units – way ahead of our original guidance of 4 million – we have now set ourselves very ambitious milestones for the fiscal ’11. I am confident that with the continuing growth momentum, strong capital structure and a number of strategic initiatives in the pipeline, we are well positioned to drive further growth in our business. In financial year ‘11, we look forward to a series of defining initiatives including aggressively expanding our geographical reach, building on our capacities and further augmenting our already strong brand portfolio.

“However, going forward, we will have to keep a close watch on the commodity prices movement, and other factors such as inflation and interest rate scenario. These factors will play a crucial role in the industry growth and profitability in days to come.”

Fiscal ‘10 witnessed Hero Honda launch nine new models across segments. All the new launches are doing well and have been driving volumes for the company. Sales of Pleasure have already crossed the 20,000 units per month threshold, and continue to grow further. 

Hero Honda has been continuously investing in innovative and ground-breaking brand building initiatives. Taking forward its commitment to promote sports in the country, the company has been supporting various disciplines of sports from cricket and golf to hockey, football and Commonwealth Games. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup, held in Delhi in March. Hero Honda is also a partner of the Commonwealth Games Delhi 2010 and the Presenting Partner of the Queen’s Baton Relay.

Milestones and Achievements during FY’09

  • Continues with its industry leadership as the world’s largest manufacturer of two-wheelers as a single company for the ninth consecutive year
  • Crosses the landmark figure of 4 million cumulative sales in a single year – posts sales of more than a million units for every quarter in FY’10
  • Hero Honda ‘Touch Points’ cross 4200 in number as part of aggressive network expansion initiative
  • Launches 9 models in the fiscal  including refreshes, variants and new models
  • Launches all new sporty and stylish  Karizma ZMR
  • Keeps strengthening its presence in the scooter market, now selling over 20,000 units of Pleasure per month
  • Builds on its strong association with multiple sports – from cricket and golf to hockey, football and Commonwealth Games
  • Continues to tap rural & upcountry markets through dedicated ‘Rural Vertical’ with the visionary “Har Gaaon…Har Aangan” platform

Awards

  • Hero Honda adjudged “Company of the Year” 2009 by Economic Times Corporate Excellence Award
  • “Bike Manufacturer of the Year” 2009 by Zigwheels
  • NDTV Profit Car India Bike India 2009“Bike Manufacturer Award”
  • Hero Honda Karizma ZMR wins “Viewers’ Choice” Award at the NDTV Profit Car India Bike India Awards, 2009
  • Mr. Pawan Munjal  adjudged NDTV Profit Car India Bike India “Man of the Year” 2009 Award
  • Dr. Brijmohan Lall, honored with the NDTV Profit Business Leadership Lifetime Achievement Award 2009
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