Summary

• Page properties (1 modified, 0 added, 0 removed)

Details

Page properties

Content

...	...	@@ -60,48 +60,32 @@
60	60
61	61	= Business Overview =
62	62
63		-FY 2018-19 was a roller-coaster year for the two-wheeler industry. After a healthy first half, the second half turned into a rough ride on account of insurance price increase, liquidity crunch and agriculture sector slowdown. Overall, the two-wheeler industry grew by a moderate 5% compared to the previous year (FY 2017-18). The two-wheeler industry volumes for full year were 21.17 million units. During the year, ABS/CBS compliance was implemented with effect from April 1, 2019 and compliant variants were launched through the second half of the fiscal year.
	63	+FY 2018-19 was a roller-coaster year for the two-wheeler industry. After a healthy first half, the second half turned into a rough ride on account of insurance price increase, liquidity crunch and agriculture sector slowdown. Overall, the two-wheeler industry grew by a moderate 5% compared to the previous year (FY 2017-18). The two-wheeler industry volumes for full year were 21.17 million units. During the year, ABS/CBS compliance was implemented with effect from April 1, 2019 and compliant variants were launched through the second half of the fiscal year.{{footnote}}https://www.heromotocorp.com/en-in/uploads/Annual_Reports/pdf/20190715054601pdf266.pdf{{/footnote}}
64	64
65		-
66	66	Motorcycles, which contribute to64% of the two-wheeler industry, grew by 8% with volumes of 13.59 million units. In the segments within motorcycles, following trends were seen in FY2018-19.
67	67
68		-
69	69	The contribution of scooters to the overall industry volumes declined from 33.2% to 31.6%during the year. The segment growth remained flat due to multiple reasons including an increase in overall cost of ownership and low growth in urban India. 100-110ccscooter segment declined by 9% in FY 2018- 19, while 125cc segment grew by 57%. The scooter segment volumes stood at 6.70 million units.
70	70
71		-
72	72	Mopeds contributed 4% to the two-wheeler industry. The moped segment volumes stood at 0.88million units, a marginal growth of 2% over the previous year.
73	73
74		-
75	75	Hero MotoCorp Ltd. recorded its highest ever annual domestic sales of 7.61 million units during the fiscal year 2018-19, which is 2 million units more than the nearest competitor. The Company registered this growth through a strategic approach, continuous focus on lead management, digitization and customer engagement activities, while weathering the challenges of insurance price increases and liquidity crunch in the second half of the year.
76	76
	73	+**Brand Milestones**
77	77
78		-Brand Milestones
	75	+* Splendor continued to be the Number 1 motorcycle brand made in India and entered the exclusive 3 million units-in-a-year club
	76	+* HF Deluxe crossed 2 million units-in-a-year milestone
	77	+* Destini 125 became the fastest growing 125cc scooter giving it ~~20% market share in the aforementioned segment
79	79
80		-• Splendor continued to be the Number 1 motorcycle brand made in India and entered the exclusive 3 million units-in-a-year club
	79	+**Hero MotoCorp’s Performance by Sub-segments:**
81	81
82		-HF Deluxe crossed 2 million units-in-a-year milestone
	81	+* Entry Segment: Hero MotoCorp’s volume grew by 15% over the previous year. The market share in this segment stood at56.4%
	82	+* Deluxe 100cc Segment: Hero MotoCorp’s volume grew by 8% over the previous year. The market share in this segment stands at a solid 80.8%, a gain of another 2.7%over the previous year
	83	+* Deluxe 125cc Segment: The market share in this segment is at 56.2%, which is similar to the previous year despite a decline of 6% in volumes
	84	+* Premium (150cc+) Segment: The market share in this segment stood at 1.4%, a loss of 1.1%over the previous year. With the launch of new models in this segment, the Company expects to drive market share recovery in FY2019-20
	85	+* Scooter Segment: The market share in this segment stood at 10.7%. With the launch of two new scooters, Maestro Edge 125 and the new Pleasure, the Company is focussed on gaining market share in this segment.
83	83
84		-Destini 125 became the fastest growing 125cc scooter giving it ~~20% market share in the aforementioned segment
	87	+== Key Business Drivers ==
85	85
86		-
87		-Hero MotoCorp’s Performance by Sub-segments:
88		-
89		-•
90		-
91		-Entry Segment: Hero MotoCorp’s volume grew by 15% over the previous year. The market share in this segment stood at56.4%
92		-
93		-Deluxe 100cc Segment: Hero MotoCorp’s volume grew by 8% over the previous year. The market share in this segment stands at a solid 80.8%, a gain of another 2.7%over the previous year
94		-
95		-Deluxe 125cc Segment: The market share in this segment is at 56.2%, which is similar to the previous year despite a decline of 6% in volumes
96		-
97		-Premium (150cc+) Segment: The market share in this segment stood at 1.4%, a loss of 1.1%over the previous year. With the launch of new models in this segment, the Company expects to drive market share recovery in FY2019-20
98		-
99		-Scooter Segment: The market share in this segment stood at 10.7%. With the launch of two new scooters, Maestro Edge 125 and the new Pleasure, the Company is focussed on gaining market share in this segment.
100		-
101		-
102		-Key Business Drivers
103		-
104		-
105	105	Consumer Experience: Customer experience is not only the lead indicator of measuring customer loyalty, identifying unhappy customers, reducing churn and increasing revenue; it is also a key point of differentiation that helps attract new customers in competitive business environments. Hence, it is critical to measure and manage customer experience on regular basis.
106	106
107	107	Hero Happiness Score, a unique initiative to drive and measure in-store consumer experience, increased significantly with the help of various customer-oriented process enhancements at dealerships.
...	...	@@ -108,17 +108,14 @@
108	108
109	109	Some of these initiatives include service camps, pick up and drop facilities in select markets, automation at workshops to create a seamless and better experience for the customers.
110	110
111		-
112	112	Expansion of Distribution Network and Institutional Sales: Growth in two-wheeler market propelled the organization to expand its network. Institutional Sales is a focus area for Hero MotoCorp and the Company has sold 1.43million units in this category. Also, focussed on large corporates and logistics, delivery service businesses.
113	113
	97	+== Global business ==
114	114
115		-Global business
116		-
117	117	Expansion of Distribution Network and Institutional Sales: Growth in two-wheeler market propelled the organization to expand its network. Institutional Sales is a focus area for Hero MotoCorp and the Company has sold 1.43million units in this category. Also, focussed on large corporates and logistics, delivery service businesses.
118	118
	101	+**South Asia**
119	119
120		-South Asia
121		-
122	122	Hero MotoCorp has presence in key South Asian markets including Bangladesh, Nepal and Sri Lanka. In all countries, the market is moving towards premium motorcycle segment, with34%in Bangladesh, 39% in Nepal and 17% in Sri Lanka. Increasing popularity of scooters is another trend in these regions with 34% in Nepal and 65% in Sri Lanka, with market slowly shifting to stylish 125cc scooters.
123	123
124	124	Hero MotoCorp crossed 100,000unit volumes in retail sales in Bangladesh for the first time in FY2018-19 registering a growth of 38%. Overall growth in the Asian region was 12%.
...	...	@@ -125,67 +125,44 @@
125	125
126	126	To further increase brand equity and showcase its product and technology capabilities, the Company participated in Auto Shows across countries in the region (Kathmandu, Colombo and Dhaka). In the Dhaka Auto Show in Bangladesh, three new products were displayed: Passion XPRO, iSmart 110+ and Maestro Edge. A unique retail financing scheme ‘Aamar Hero’ that was launched nationally in Bangladesh in a phased manner has been showing very promising results.
127	127
	109	+**Africa**
128	128
129		-Africa:
130		-
131	131	Currency and crude oil prices stabilized in Nigeria which led to the recovery of demand with industry growth of 60% for the two-wheeler industry. Hero MotoCorp continued its network expansion and developed new value proposition for customers, which should help in good stead in FY2019-20. The Company also re-energized core east African markets of Uganda and Tanzania with strong and committed distributor partners.
132	132
	113	+**Middle East**
133	133
134		-Middle East:
135		-
136	136	In Turkey, the industry dropped by ~~28% due to currency depreciation and economic recession. Hero MotoCorp launched Euro-IV compliant products in the market, which have been received well by customers.
137	137
	117	+**Latin America:**
138	138
139		-Latin America:
140		-
141	141	The Latin America region grew 38% in terms of Company dispatches in FY2018-19. Countries such as Colombia, Bolivia and Ecuador showed growth in excess of 100%, while the CAC cluster (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua)declined by 29%.
142	142
	121	+= Financial highlights =
143	143
144		-Financial highlights
	123	+On Feb 06, 2020 the company reported 14.47 per cent year-on-year (YoY) rise in standalone net profit at Rs 880.41 crore for the quarter ended December 31. The two-wheeler major had posted a profit of Rs 769.10 crore in the same period last year.{{footnote}}https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr{{/footnote}}
145	145
146		-
147		-On Feb 06, 2020 the company reported 14.47 per cent year-on-year (YoY) rise in standalone net profit at Rs 880.41 crore for the quarter ended December 31. The two-wheeler major had posted a profit of Rs 769.10 crore in the same period last year.
148		-
149		-[[https:~~/~~/economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr>>url:https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr]]
150		-
151	151	Total income, however, declined by 10.84 per cent to Rs 7178.94 crore. The company sold 15,40,876 vehicles during the quarter against 17,98,905 in the corresponding quarter last year.
152	152
153	153	The company announced a dividend of Rs 65 per share on face value of Rs 2 each.
154	154
155		-
156	156	Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, “The two-wheeler industry continues to face challenges amid an overall economic slowdown. Early indicators, such as a positive Rabi crop, augur well for the rural economy, which in turn is likely to help the industry.”
157	157
158		-
159	159	He added that the slew of measures announced by the finance minister as part of Budget would also go a long way in reviving the economy. However, it will take some time for the two-wheeler industry to see a sustained recovery. Hero MotoCorp expects to see a positive turnaround in the second half of next financial year.
160	160
161		-
162	162	During the third quarter, Hero MotoCorp launched India’s first BS-VI motorcycle, the Splendor iSmart and then followed it with the first BS-VI motorcycle in the entry segment - HF-Deluxe.
163	163
164		-
165	165	“The company is geared-up to transition its entire product range to the new emission norms well before the regulatory deadline and plans to stop all BS IV production by mid-February,” Hero MotoCorp said in a release.
166	166
	137	+= Recent Developments =
167	167
	139	+**On May 4 2020**,  Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, is rapidly gearing up to commence operations, as per the guidelines stipulated by the Ministry of Home Affairs of the Government of India.{{footnote}}https://www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf{{/footnote}}
168	168
169		-Recent Developments
170		-
171		-
172		-On May 4 2020,  Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, is rapidly gearing up to commence operations, as per the guidelines stipulated by the Ministry of Home Affairs of the Government of India.
173		-
174		-[[https:~~/~~/www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf>>url:https://www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf]]
175		-
176	176	Hero MotoCorp proactively halted operations across its manufacturing facilities and made
177	177
178	178	WFH mandatory for all its offices from March 22, 2020.
179	179
	145	+**On May 11 2020,** Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement. In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets.{{footnote}}https://www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html{{/footnote}}
180	180
	147	+= References =
181	181
182		-On May 11 2020, Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement. In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets.
183		-
184		-[[https:~~/~~/www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html>>url:https://www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html]]
185		-
186		-
187		-
188		-
189		-References
190		-
191	191	{{putFootnotes/}}