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Hero Motocorp elevates Pawan Munjal as Vice Chairman

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Hero Motocorp elevates Pawan Munjal as Vice Chairman

Hero MotoCorp has elevated Pawan Munjal, currently Managing Director & Chief Executive Officer, to the newly-created position of Vice Chairman of the company.

Munjal will now hold the position of Vice-Chairman and Managing Director.

With its highest-ever quarterly sales of 17,15,254 units of two-wheelers 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.

HMCL 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.

Speaking on Munjal’s elevation, 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.”

Pawan Munjal 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,” said Munjal.

The Q1 of FY 15 marked several milestones for HMCL. In April 2014, HMCL launched its operations in Bangladesh through a Joint Venture with the reputed Nitol Niloy Group. 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. There will be a total equity injection of US$ 12.6 million in a ratio of 55:45 over a period of two years. 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.

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.

In terms of sales performance in FY15, in May 2014, HMCL sold 602483 units – all-time high dispatch sales for a non-festive month while in the festival month of October last year it sold 625,420 units of two-wheelers.

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