The Group The Driving Force Global Gearing National
Mainstream		 Working At Hero Our Products

Hero Group > News

HERO HONDA CREATES NEW PERFORMANCE RECORDS

Monday, April 12, 2004

Sells over 2 million motorcycles in 2003-04
Highest turnover in the Indian two-wheeler industry.

  • Total Turnover for the year up by15 % to Rs 5997 crores.
  • Profit After Tax (PAT) for the year increases by 25%
  • Total motorcycle sales for the year up by 23%; Q4 sales up by 50%
  • World No.1 for the third year in a row
  • 5 successful model launches drive 4% growth in market share to 48%
  • Announces 500% final dividend, Total dividend 1000% for the year.
  • Market capitalization crosses Rs.10,000 crores mark

Hero Honda Motors Ltd., the ‘World No.1’ two wheeler company, today announced outstanding financial results for the year 2003-04, firmly establishing its world leadership for the third year in a row.

The year 2003-04 has been yet another year of landmark achievements for Hero Honda, especially the feat of selling over 2 million motorcycles in a single year, which has not been achieved in the two-wheeler industry so far. With this accomplishment, Hero Honda has been able to double its annual sales of motorcycles, in a short period, from 1 million in 2000-01 to over 2 million in 2003-04.

The company’s Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 5997 crore, a growth of 15% over Rs. 5195 crore recorded in 2002-03. This is the highest turnover ever recorded in the history of the Indian two-wheeler industry.

The company’s Profit After Tax (PAT) soared to Rs. 728 crore, a growth of 25% over previous year’s Rs. 581 crore. The Profit Before Tax went up to an impressive four digit figure of Rs. 1072 crore, moving up from Rs. 885 crore, registering a remarkable increase of 21%.

Widely acknowledged as one of the most investor-friendly companies, the company announced a final dividend of 500%. Thus. with the interim dividend of 500% paid earlier, the total dividend for the year is also a four digit figure of 1000%

The Operating Margin was an impressive 15.56%, versus 15.52 % in the previous fiscal. The improvement in operating margin reiterates the company’s continued and dedicated efforts towards cost rationalization, higher indigenisation, better working capital management and improved manufacturing efficiencies.

The company’s volume sale of 20,70,147 motorcycles during the year, marks a splendid jump of 23 % over previous year’s sale of 16,77,535 motorcycles.

Buoyed by the tremendous response received by all its new models launched during the previous financial year, the company has ended the year with 48% market share in motorcycles - a remarkable increase of 4 per cent over preceding fiscal. The company’s market share in the two-wheeler category has also increased to 37 %, an increase of 4 %.

The performance of the company in the fourth quarter of the FY 2003-04 was also par excellence. The motorcycle sales for the period January - March 2004 grew by a remarkable 50 per cent as compared with the corresponding period in the previous FY. The company sold 5,92,718 motorcycles in the quarter, significantly up from 3,96,193 units sold during January - March 2003.

The Total Turnover of the company for the same period also zoomed 38% from Rs. 1248 crore in the fiscal 2002-03 to Rs.1724 crores. While the Profit After Tax during the quarter registered a splendid jump of 42%, from Rs. 149 crores during January - March 2003 to Rs. 211 crores during the same period, the Profit Before Tax showed an impressive upward trend, growing 41% from Rs. 221 crores during the last quarter of 2002-03 to Rs. 311 crores during the same period in 2003-04.

Commending the company’s excellent performance and the achievement of the 2 million plus sale milestone, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, “This landmark achievement could not have been possible without the excellent support of our esteemed stake holders and customers and especially our very efficient and resourceful supply chain. The support of our partners Honda Motor Co., Ltd., Japan and Hero Cycles Ltd., have greatly helped in our success. It has always been our endeavor to offer enhanced value to our stakeholders by adhering to world standards.”

Enthused by the world record performance Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, “The key reason for our success has been our continuous pursuit of pro-actively delivering value and delight to our customers. This achievement once again demonstrates our intrinsic capability to comprehend changing customer needs and fulfilling them with matching products. With the voluminous success of CD-Dawn, Splendor+ and Passion Plus, we have ended the year with an undisputed leadership in the entry and executive segments - the core of the Indian motorcycle industry. Ambition135 has strengthened our position in the premium segment.”

Talking about the company’s future plans, he added, “We are committed to continue our world class performance, by delivering even better value to the customers in the years ahead by offering products with the latest technology, styling and performance. Several new and exciting product launches are lined up for the future.”

Back To News