925HERO FINCORP LIMITED UNLISTED SHARE
About Hero FinCorp Limited
Hero FinCorp Limited is an NBFC (Non-Banking Financial Company) with a variety of product portfolios. Incorporated in December 1991 as Hero Honda FinLease Limited; after the restructuring of the parent company Hero MotoCorp Limited (Formerly known as Hero Honda Motors Limited), led to the present form as Hero FinCorp Limited. The goal of the company is to help the low-income people and make the dreams of Indian entrepreneurs and companies a reality. In the field of financial services, the company focuses on customers who are unable to obtain banking services for reasons such as limited number of documents and limited reputation, it is regarded as a high-risk category by bank channels.
Hero FinCorp Limited has established a housing finance department with Hero Housing Finance Limited (Hero FinCorp Limited owns 100% of the shares) to meet housing needs and support the government's overall mission of providing housing for all. The Company provides a variety of other financial products consisting of used Car Financing, Loyalty Personal Loan, Inventory Funding, Loan Against Property, Loans to SMEs and Emerging Corporates. Today, it has close to more than 4000 retail financing touch-points across Hero MotoCorp's network over more than 1900+ cities, towns and villages, and has partnered with over 3000 satisfied corporate clients.
Company products include :
Retail Loan
Digital loan
Corporate Loan
BILL DISCOUNTING OR INVOICE DISCOUNTING
Other Loans
HOME LOAN
INCORPORATION DETAILS
CIN | U74899DL1991PLC046774 |
Registration Date | 16December, 1991 |
Address of the Registered office and contact details | 34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110 057 E-mail: investors@herofincorp.com Website: www.herofincorp.com |
Details of Registrar and Transfer Agent | Link Intime India Private Limited Noble Heights, 1st Floor, Plot NH 2, C-1 Block LSC, Near Savitri Market, Janakpuri, New Delhi - 110058 Tel: +91 11 4141 0592-94 |
BOARD OF DIRECTORS AND MANAGEMENT
Late Shri. B.M.L. Munjal (Group Founder)
Renu Manjul (Managing Director)
Vivek Chaand Sehgal (Chairman – SMG)
Pradeep Dinodia (Director & business Lead)
Jayesh Jain (Chief Financial Officer)
Preemita Singh (Chief HR Officer)
Sajin Mangalathu (Head – Technology & Operations)
Abhimanyu Manjul (Managing Director & CEO)
Pawan Manjul (Chairman & Director)
Sanjay Kukreja (Director)
Ajay Sahasrabuddhe (COO – Retail Finance)
Mahesh Sanghavi (Chief Business Officer)
Priya Kashyap (MD & CEO’s Office)
HERO FINCORP LIMITEDUNLISTED SHARE DETAILS
Total Available Shares: | 12,73,06,674 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE957N01016 |
PAN No. | AAACH0157J |
Lot Size: | 50 |
Last Traded Price: | Rs. 950 |
Current Unlisted Share Price: | Rs. 12094.13 Crore |
Principal Business Activities of the Company
All the business activities contributing 10% or more of the total turnover of the company:
Name and Description of main products / services | NIC Code of the Product/ service | % to total turnover of the company |
NBFC (Financing Services) | 6492 | 98.55% |
SHAREHOLDING PATTERN
As on 31-03-2020
S. no. | Shareholders’ Name | No. of Shares | % of total Shares of the company |
| Promoter Shareholding | ||
1 | Individual/HUF | 1,57,48,106 | 12.37% |
Bodies Corp. - | |||
1 | Hero MotoCorp Ltd. | 5,24,31,893(41.19%) | 65.74% |
2 | Others | 3,12,51,740(24.55%) | |
Public shareholding | 2,60,50,242 | 20.46% | |
Total | 12,73,06,674 | 100.00% |
INDUSTRY OVERVIEW
The NBFC sector continued to grow its share in the financial services industry. The importance of NBFCs in credit intermediation continued to grow, repayment default by a systemically important NBFC in September 2018 brought to focus asset-liability mismatches of the sector — where some NBFCs were more impacted than the others.
To strengthen the asset-liability profile of the sector, RBI introduced a liquidity coverage ratio (LCR) requirement for all NBFCs with AUM of Rs. 5,000 crore and above. The regulation also stipulates that NBFCs should attain LCR of 100% in a phased manner over a period of four years starting December 2020. It is a welcome regulatory change and will significantly strengthen ALM profile of the NBFC sector.
COVID-19 further accentuated ALM challenges of the NBFC sector. On one hand, NBFCs have to offer such moratoriums to their customers; while on the other, their market borrowings must be repaid on due dates.
The COVID-19 pandemic has also resulted in a deterioration in the asset quality of the financial sector. NBFCs too will face similar pressures.
For FY 2022, the ratings agencies have given a stable outlook. Improved system liquidity and strong capital buffers helped boosting loan disbursements. It is expected that NBFC business will grow by 9.5% in FY 2022.
FINANCIALS OFHERO FINCORP LIMITED(₹ in crores)
Particulars (Cr) | 2020 | 2019 | 2018 | 2017 |
Revenue | 3,663.2 | 2,492.52 | 1,691 | 1,332.69 |
Profit Before Tax | 480.93 | 413.66 | 215.22 | 200.62 |
PAT | 310.17 | 268.37 | 145.8 | 130.4 |
EPS | 26.98 | 25.97 | 15.63 | 15.4 |
Book Value per share | 373 | 321 | 229 | 211 |
PAT Margins (%) | 8.46 | 10.76 | 8.62 | 9.78 |
Dividend Payout To PAT (%) | 10 | 21.8 | 24.6 | 12.8 |
Return on Equity (%) | 9.1 | 7.4 | 10.7 | 8.6 |
Return on Assets (%) | 1.4 | 1.6 | 1.3 | 1.6 |
BALANCE SHEET OF HERO FINCORP LIMITED (₹ in crore)
Particulars (Rs. In crores) | 2020 | 2019 |
ASSETS | ||
FINANCIAL ASSETS | ||
Cash and Cash equivalents | 2,213.75 | 107.21 |
Investments | 451.83 | 961.87 |
Loans | 22,482.7 | 19,215.7 |
Trade receivables | 7.87 | 4.34 |
Other financial assets | 30.28 | 51.44 |
NON-FINANCIAL ASSETS | ||
Tax assets | 294.59 | 192.66 |
Property plant and equipment | 67.46 | 78.31 |
Intangible assets | 13.76 | 16.61 |
Other Non-financial assets | 74.18 | 23.73 |
TOTAL ASSETS | 25,636.4 | 20,651.9 |
EQUITY AND LIABILITIES | ||
Equity share capital | 121.54 | 114.15 |
Other Equity | 4,405.93 | 3,552.36 |
TOTAL EQUITY | 4,527.47 | 3,666.51 |
LIABILITIES | ||
FINANCIAL LIABILITIES | ||
Payables | 161.54 | 116.19 |
Borrowing and Debt securities | 19,842.1 | 15,898.8 |
Subordinate liabilities | 548.35 | 424.1 |
Other Financial liabilities | 428.59 | 457.83 |
NON-FINANCIAL LIABILITIES | ||
Tax Liabilities | 60.14 | 33.53 |
Provisions | 32.14 | 23.09 |
Other Non-financial liabilities | 36.09 | 31.83 |
TOTAL LIABILITIES | 21,108.94 | 16,985.34 |
TOTAL EQUITY AND LIABILITIES | 25,636.41 | 20,651.85 |
DIVIDEND AND RETAINED EARNINGS
Particulars | 2020 | 2019 | 2018 | 2017 |
Dividend (In Rs.) | 2.55 | 4.25 | 2.8 | 1.5 |
Retained Earnings (Consolidated) (In Rs. Crore) | 471.79 | 346.05 | 218.07 | 141.1 |
PERFORMANCE OF THE COMPANY
In FY20, the growth rate exceeded 30% CAGR, and the company issued loans of Rs 17,827 crores. The disbursal in FY20 was 40% higher than the Rs 12,756 crores in FY19. The company disbursement growth helped increase its AUM, the enterprise level consolidated AUM for Hero Fincorp Limited and Hero Housing Finance stood at INR 25,182 crores as of March 31, 2020.
Profit after tax (PAT) increased from Rs. 268 crores in FY19 to Rs. 310 crores, an increase of approximately 16%.
Profit before tax (PBT) increasedby 16% from Rs.413.66 crore in FY 2018-19 to Rs. 480.93 crore in FY 2019-20, accordingly the Profit after tax (PAT) registered an increase of 16% from Rs.268.37 crore in FY 2018-19 to Rs. 310.17 crore in FY 2019-20.
The company had an outstanding year due to strong sales growth in all business areas. In the FY 2019-20, the company took several measures to strengthen its business model and maintain its growth rates, such as the introduction of several new products and options.
The Company has consistently delivered dividends to the shareholders. However, Dividend per share decreased by around 60% from Rs. 4.25in FY 2019 to Rs. 2.55 in FY 2020
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