Annual General Meeting

Chairman's speech, Hero Motocorp Ltd. 2012

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In its new Avatar, the Company notched 15.41% growth in sales of over 6.23 million units in this financial year compared to 5.40 million units for the last financial. During the year, the Company not only retained its position as the World's largest Two-Wheeler manufacturer Company but continued to lead with the domestic market share of around 45% vis-a-vis 44% last year.

In the domestic scooter market, the Company sold over 0.41 million units of its popular brand Pleasure — a 22% year-onyear growth, with a market share of 16%. It successfully launched a new 110cc scooter 'Maestro', strengthening a steadily growing presence in the gearless scooter segment.

To summarise the monetary performance of the Company, the total sales (net of excise duty) increased by 21.42% from INR 19,245 crores in 2010-11 to INR 23,368 crores and similarly Net Income from Operations grew by 21.55% to INR 23,579 crores from INR 19,398 crores in 2010-11.

The Company's Earnings before Interest Depreciation and Taxes (EBITDA) margins stood at 15.35% in 2011-12. Profit before Tax increased by 19.13% from INR 2,405 crores in 2010- 11 to INR 2,865 crores in 2011-12. The operating margin stood at 10.69% in 2011-12 as compared to 11.39% in 2010-11. The Company's Profit after Tax (PAT) increased by 23.35% in 2011-12.