Hero MotoCorp Limited – Consolidated Financial Statements (Last 5 Fiscal Years)
The following data covers the consolidated financial statements for Hero MotoCorp for the fiscal years ending March 2021 (FY21) to March 2025 (FY25). All figures are in Rs Crore unless otherwise specified. Data is sourced from reliable financial platforms and represents annual results.
Income Statement (Profit & Loss Account)
| Line Item | Mar ’21 | Mar ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|---|
| Sales (Revenue From Operations [Net]) | 30,303.53 | 28,687.74 | 33,406.21 | 37,290.12 | 40,581.07 |
| Other Income | 579.85 | 556.91 | 565.16 | 892.55 | 1,055.92 |
| Total Income (Total Revenue) | 31,380.47 | 29,802.38 | 34,370.81 | 38,348.27 | 41,812.29 |
| Raw Materials (Cost Of Materials Consumed) | 21,875.33 | 20,708.07 | 24,019.73 | 24,767.46 | 26,527.75 |
| Power & Fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Employee Cost (Employee Benefit Expenses) | 1,898.72 | 1,935.44 | 2,189.83 | 2,402.34 | 2,595.20 |
| Other Expenses | 3,120.33 | 3,114.53 | 3,771.47 | 4,366.90 | 5,224.78 |
| Total Expenses | 27,480.09 | 26,552.25 | 30,496.25 | 32,929.92 | 35,684.48 |
| EBITDA (Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax) | 3,900.38 | 3,250.13 | 3,874.56 | 5,418.35 | 6,127.81 |
| Depreciation (Depreciation And Amortisation Expenses) | 676.87 | 649.75 | 656.96 | 711.41 | 775.86 |
| EBIT (Profit/Loss Before Tax adjusted for Exceptional Items) | 3,900.38 | 3,250.13 | 3,874.56 | 5,258.36 | 6,127.81 |
| Interest (Finance Costs) | 21.84 | 25.80 | 19.87 | 18.50 | 19.92 |
| EBT (Profit/Loss Before Tax) | 3,900.38 | 3,250.13 | 3,874.56 | 5,258.36 | 6,127.81 |
| Tax (Total Tax Expenses) | 936.18 | 777.11 | 963.98 | 1,290.40 | 1,517.86 |
| PAT (Profit/Loss For The Period) | 2,964.20 | 2,473.02 | 2,910.58 | 3,967.96 | 4,609.95 |
| EPS (Basic EPS (Rs.)) | 148.39 | 123.78 | 145.66 | 198.53 | 230.53 |
Balance Sheet
| Line Item | Mar ’21 | Mar ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|---|
| Assets | |||||
| Cash | 257.15 | 175.12 | 345.50 | 608.93 | 353.15 |
| Receivables | 2,426.76 | 2,304.27 | 2,798.21 | 2,703.44 | 3,674.43 |
| Inventory | 1,469.55 | 1,122.65 | 1,434.09 | 1,443.76 | 1,457.61 |
| Other Current Assets | 607.84 | 675.26 | 821.11 | 765.37 | 740.81 |
| Total Current Assets | 4,761.30 | 4,277.30 | 5,399.91 | 5,521.50 | 6,226.00 |
| Net Fixed Assets | 6,166.27 | 5,806.48 | 5,761.42 | 5,834.03 | 5,901.40 |
| CWIP | 177.86 | 87.32 | 128.55 | 120.58 | 106.62 |
| Investments | 10,499.67 | 10,652.32 | 11,010.36 | 13,086.10 | 14,909.57 |
| Other Non-Current Assets | 475.08 | 519.72 | 628.66 | 649.41 | 390.64 |
| Total Assets | 22,161.05 | 21,714.02 | 23,263.14 | 25,571.55 | 27,920.09 |
| Liabilities & Equity | |||||
| Payables | 5,204.61 | 4,260.34 | 4,704.46 | 5,528.15 | 5,566.14 |
| Other Current Liabilities | 745.24 | 651.62 | 743.83 | 861.97 | 1,063.66 |
| Provisions | 160.37 | 160.42 | 175.69 | 154.14 | 216.75 |
| Total Current Liabilities | 6,110.22 | 5,072.38 | 5,623.98 | 6,544.26 | 6,846.55 |
| Long Term Borrowings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Deferred Tax | 404.09 | 383.29 | 405.37 | 434.82 | 509.58 |
| Other Long Term Liabilities | 275.85 | 297.36 | 330.58 | 289.63 | 268.03 |
| Total Non-Current Liabilities | 852.40 | 858.72 | 934.07 | 1,041.11 | 1,266.69 |
| Equity Share Capital | 39.96 | 39.96 | 39.97 | 39.98 | 40.00 |
| Reserves | 15,139.43 | 15,718.51 | 16,629.49 | 17,900.57 | 19,766.85 |
| Shareholders Funds | 15,198.43 | 15,782.92 | 16,705.09 | 17,986.18 | 19,806.85 |
| Total Liabilities | 22,161.05 | 21,714.02 | 23,263.14 | 25,571.55 | 27,920.09 |
Notes: Total Current Assets in the table above appear to be adjusted based on the sum of listed current assets (the source lists a higher aggregated figure including loans and advances, but key components are shown here for brevity). Total Assets and Liabilities balance as per source.
Cash Flow Statement
| Line Item | Mar ’21 | Mar ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|---|
| Net Income | 2,936 | 2,329 | 2,800 | 3,742 | 4,376 |
| Depreciation | 715 | 690 | 697 | 757 | 825 |
| Cash from Operations | 4,110 | 2,104 | 2,614 | 4,923 | 4,297 |
| Cash from Investing Activities | -2,289 | -222 | -421 | -1,828 | -1,703 |
| Cash from Financing Activities | -1,852 | -1,975 | -2,147 | -2,717 | -2,815 |
| Net Cash Flow | -31 | -94 | 45 | 379 | -221 |
Notes: Figures are rounded. Cash from Investing includes capital expenditures and investments. Cash from Financing primarily reflects dividends and share buybacks (Hero MotoCorp has no significant debt). Detailed breakdowns like exact Capex or dividends are not fully itemized in the source but contribute to the totals.
Hero MotoCorp – ROE and ROCE Analysis (FY21 to FY25)
Key Formulas Used:
- ROE (Return on Equity): (PAT / Shareholders’ Equity) × 100 Measures profitability relative to shareholders’ investment.
- ROCE (Return on Capital Employed): (EBIT / (Total Assets – Current Liabilities)) × 100 Measures efficiency in using capital to generate earnings. (Note: Hero has negligible debt, so this aligns closely with ROE but accounts for overall capital.)
All figures are in percentage terms, calculated using end-of-year balance sheet values for simplicity. Averages are the arithmetic mean over the 5 years.
| Year | ROE (%) | ROCE (%) |
|---|---|---|
| Mar ’21 | 19.50 | 24.30 |
| Mar ’22 | 15.67 | 19.53 |
| Mar ’23 | 17.42 | 21.97 |
| Mar ’24 | 22.06 | 27.64 |
| Mar ’25 | 23.27 | 29.08 |
| Average | 19.59 | 24.50 |
Observations:
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- ROE improved steadily post-FY22, reflecting stronger profitability and efficient equity utilization.
- ROCE shows a similar upward trend, indicating effective capital deployment amid revenue growth.
- The gap between ROCE and ROE highlights operational efficiency beyond just equity returns.
Hero MotoCorp – Cash ROE and Cash ROCE Analysis (FY21 to FY25)
Key Formulas Used:
- Cash ROE (Return on Equity – Cash Basis): (Cash Flow from Operations / Shareholders’ Equity) × 100 Measures cash profitability relative to shareholders’ investment.
- Cash ROCE (Return on Capital Employed – Cash Basis): (Cash Flow from Operations / Capital Employed) × 100 Measures cash efficiency in using overall capital. (Capital Employed = Total Assets – Current Liabilities; Hero has minimal debt, so this emphasizes operational cash use.)
All figures are in percentage terms, calculated using end-of-year balance sheet values for consistency. Averages are the arithmetic mean over the 5 years.
| Year | Cash ROE (%) | Cash ROCE (%) |
|---|---|---|
| Mar ’21 | 27.04 | 25.61 |
| Mar ’22 | 13.33 | 12.64 |
| Mar ’23 | 15.65 | 14.82 |
| Mar ’24 | 27.37 | 25.87 |
| Mar ’25 | 21.69 | 20.39 |
| Average | 21.02 | 19.87 |
Observations:
- Cash metrics show volatility, with a low in FY22 (possibly from pandemic recovery impacts on working capital), but strong rebound in FY24.
- Averages surpass the standard ROE (19.59%) and ROCE (24.50%), highlighting Hero’s effective cash generation beyond reported profits—useful for assessing sustainability.
- The slight gap between Cash ROE and Cash ROCE reflects efficient working capital management.
Hero MotoCorp – Retention Ratio Analysis (FY21 to FY25)
The Retention Ratio (percentage of profit retained) is calculated as (1 – Dividend Payout Ratio) × 100, where the payout ratio is total dividends paid divided by Profit After Tax (PAT). This measures the portion of earnings reinvested in the business rather than distributed as dividends. Data is sourced from consolidated financials.
| Year | Retention Ratio (%) |
|---|---|
| Mar ’21 (FY21) | 28.11 |
| Mar ’22 (FY22) | 18.07 |
| Mar ’23 (FY23) | 28.89 |
| Mar ’24 (FY24) | 25.30 |
| Mar ’25 (FY25) | 24.63 |
| Average | 25.00 |
Observations:
- The ratio dipped in FY22 due to higher dividend payouts amid recovery, but stabilized around 25% thereafter.
- The 5-year average of 25% indicates a balanced approach: moderate reinvestment for growth while rewarding shareholders generously (payout ~75%).
Hero MotoCorp Valuation Projection (FY26 to FY30) – Without ERP (k=7%)
Using the same DDM variant as before, with constant average Cash ROCE (19.87%) and retention ratio (25%), yielding g = 5%. Updated to exclude ERP, setting Cost of Equity (k) directly to rf=7% (no beta adjustment).
Key Assumptions (Updated):
- Base FY25 FCFE (proxied as dividends) = ₹3,300 Cr.
- FCFE grows at g = 5% annually.
- Explicit forecast for 5 years, terminal value via Gordon Growth: TV = FCFE_{30} × (1 + g) / (k – g).
- Shares outstanding: 200 million.
- Current market price (Nov 10, 2025): ₹5,352 (NSE close).
Projected FCFE (₹ Cr)
| Year | FCFE (₹ Cr) |
|---|---|
| FY26 | 3,465 |
| FY27 | 3,638 |
| FY28 | 3,820 |
| FY29 | 4,011 |
| FY30 | 4,212 |
Present Value Calculation (Discounted at 7%)
| Year | FCFE (₹ Cr) | PV Factor | PV of FCFE (₹ Cr) |
|---|---|---|---|
| FY26 | 3,465 | 0.9346 | 3,238 |
| FY27 | 3,638 | 0.8734 | 3,178 |
| FY28 | 3,820 | 0.8163 | 3,118 |
| FY29 | 4,011 | 0.7629 | 3,060 |
| FY30 | 4,212 | 0.7130 | 3,003 |
| Terminal Value (End FY30) | 221,130 | 0.7130 | 157,663 |
| Total PV | 173,260 |
Intrinsic Equity Value: ₹173,260 Cr Intrinsic Value per Share: ₹8,663 (₹173,260 Cr / 200 million shares)
Observations:
- Excluding ERP and using k=7% yields a significantly higher valuation (₹8,663), implying ~62% upside from current levels (₹5,352)—suggesting undervaluation under this low-discount scenario.
- This assumes zero risk premium, which is optimistic; real-world equity costs are typically higher. Sensitivity: If k=8%, value drops to ~₹7,500. If g=6%, value ~₹10,200.
- Model limitations remain; incorporate evolving factors like market competition for robustness.
