Hero Karizma, Xtreme dispatch commences: Pawan Munjal named VP

Pawan Munjal named VPHero MotoCorp, owned by Brijmohan Lall Munjal family keeps succession plans within the family itself. Pawan Munjal, 59, is third son of Brijmohan Lall Munjal and was till this promotion MD and CEO of the company actively involved in its every day affairs. He is assisted by his younger brother Sunil Munjal who is joint MD of Hero MotoCorp and Chairman of Hero Corporate Services.

The promotion has received sanctions at a recent board meeting of the company during which the first quarter results of the company were also declared. Hero MotoCorp has seen an elevation in net profits by 3% during the April-June quarter. Profits stood at INR 563 crores as compared to INR 549 crores in the same period last year while net sales increased 14% to INR 7,036 crores from INR 6,160 crores in the year ago period.

Pawan Munjal has been at the helm even prior to the company parting ways with their Japanese counterparts. The company separated from Honda Motor Co in 2011 and has ever since then augmented its global presence in a total of 18 countries across the globe which also include Peru, Guatemala, Turkey and Egypt.

Hero MotoCorp has just launched the Passion PRO TR at a price of INR 53,551. The new bike is rich in features and comes in with three paint schemes and a host of new features to include off roading tyres, head lamp grille, enhanced front fender, new knuckle guards and side mirrors. It is powered by a four-stroke, single-cylinder 97cc engine that produces 7.7bhp and 8Nm of torque and is the same engine that powers the regular Passion Pro. The company also gears up for launch of the Splendor Pro Classic next month which will be their first café racer model. Apart from this, they have also announced the commencement of dispatch of three new bikes – Karizma, ZMR and Xtreme.

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PAWAN MUNJAL ELEVATED AS VICE-CHAIRMAN

HERO MOTOCORP REPORTS HIGHEST-EVER QUARTERLY SALES OF 17,15,254 UNITS OF TWO-WHEELERS

CLOCKS REVENUES (NET SALES & OTHER OPERATING INCOME) OF RS 7036.84 CRORE; & PAT OF RS 562.76 CRORE

Financial Results for Q1, FY’15

• Total sales for the quarter stands at 17,15,254 units
• Total turnover (Net sales and other operating income) Rs.7036.84 Crore
• Net Profit After Tax (PAT) stands at Rs. 562.76 crore
• Profit Before Tax (PBT) stands at Rs765.45 crore
• EBIDTA margin for the quarter at 13.46 per cent
• Announces Interim Dividend of Rs. 30 per share

New Delhi, August 5th, 2014:

Hero MotoCorp today further strengthened its future-readiness with the elevation of Mr. Pawan Munjal, currently Managing Director & Chief Executive Officer, to the newly-created position of Vice Chairman of the company.

With the Board of Directors of Hero MotoCorp giving its approval at its meeting here today, Mr. Munjal will now hold the position of Vice-Chairman and Managing Director.

Hero has remained the world’s largest two-wheeler manufacturer in terms of unit volumes sold in a calendar year by a single company since 2001 – the year Mr. Munjal took over as the MD & CEO.

Riding on its highest-ever quarterly sales of 17,15,254 units of two-wheeler in the first quarter (April-June) of this financial year (2014-15), Hero MotoCorp’s total turnover (Net Sales & other Operating Income) in the quarter stood at Rs 7036.84 crore – a robust growth of per cent over the corresponding quarter in the previous fiscal (2013-14) when it was Rs. 6159.52 crore. EBIDTA margin for the quarter stood at 13.46 per cent.

In a clear testimony to the prudent financial management befitting the market leader, HMCL today reported Profit-After -Tax (PAT) of Rs 562.76 crore, compared to the PAT of Rs 548.58 crore in the corresponding quarter (April-June 2013) and Rs 554.43 crore in the previous quarter (January-March 2014).

Company has announced interim dividend of Rs. 30 per share i.e. 1500 percent entailing total outgo of Rs. 700.87 crores inclusive of dividend distribution tax.

Dr. Brijmohan Lall, Chairman, Hero MotoCorp, said “The Board is delighted to elevate Pawan to the position of Vice Chairman. This is an acknowledgement of his inspiring leadership and progressive vision which has helped Hero MotoCorp strengthen its No. 1 position in a highly competitive and volatile market. Undoubtedly, there are challenging times ahead and yet, under the leadership of Pawan, the future looks promising as well as exciting. It is, therefore, the right time to strengthen the hands of Pawan as he leads Hero MotoCorp to a new era of innovation and technological excellence.”

Global Foray In April 2014, HMCL launched its operations in Bangladesh through a Joint Venture with the reputed Nitol Niloy Group.
o Hero will hold majority stake of 55 per cent in the new JV while the Nitol Niloy Group will hold the rest 45 per cent stake.
o There will be a total equity injection of US$ 12.6 million in a ratio of 55:45 over a period of two years.
o Through this JV, Hero will set up its two-wheeler manufacturing plant. The plant is expected to be operational by the second quarter of FY 2015-16.
 New Facilities in India  ? In June 2014, HMCL commenced production at its fourth manufacturing plant at Neemrana in Rajasthan and also started dispatch from the plant to the market.
 Sales Performance in FY’15  ? In May 2014, HMCL sold 602483 units – all-time high dispatch sales for a non-festive month
? HMCL crossed the landmark six lakh sales figure for the second time. The all-time high monthly sales of the company was recorded in the festival month of October last year when it sold 625,420 units of two-wheelers.
? The previous highest record non-festive month was April 2014 when the company sold 571,054 units.
 Product launches  Commenced dispatch of Karizma, ZMR and Xtreme

said “I am grateful to the members of the Board and all stake holders of the company in reposing their faith and confidence in me with a larger responsibility. I take this as an acknowledgement of all the good work that we have done as a team in building on our leadership over the past several years. As we embrace new technologies and expand our global footprint across continents, the journey ahead is going to be far more exciting.

“As usual, it was yet another action-packed quarter for us. With the formation of a joint venture in Bangladesh, we have commenced activities for setting up of manufacturing plant there. We also commenced operations in our new manufacturing facility at Neemrana in Rajasthan. We have continued to sustain our robust volume growth despite the overall sluggish industry scenario. Despite the sub-normal monsoon in some parts of the country impacting sentiments, we are confident of consolidating our market leadership by clocking growth in the double digit in the rest of the fiscal.”

The Q1 of FY’15 marked several milestones for HMCL:

Global Foray In April 2014, HMCL launched its operations in Bangladesh through a Joint Venture with the reputed Nitol Niloy Group.
o Hero will hold majority stake of 55 per cent in the new JV while the Nitol Niloy Group will hold the rest 45 per cent stake.
o There will be a total equity injection of US$ 12.6 million in a ratio of 55:45 over a period of two years.
o Through this JV, Hero will set up its two-wheeler manufacturing plant. The plant is expected to be operational by the second quarter of FY 2015-16.

New Facilities in India ? In June 2014, HMCL commenced production at its fourth manufacturing plant at Neemrana in Rajasthan and also started dispatch from the plant to the market.
Sales Performance in FY’15 ? In May 2014, HMCL sold 602483 units – all-time high dispatch sales for a non-festive month
? HMCL crossed the landmark six lakh sales figure for the second time. The all-time high monthly sales of the company was recorded in the festival month of October last year when it sold 625,420 units of two-wheelers.
? The previous highest record non-festive month was April 2014 when the company sold 571,054 units.

Product launches Commenced dispatch of Karizma, ZMR and Xtreme

ENDS

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