Hero Motors Limited (Hero Motors) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Hero Motors Limited

Hero Motors Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Share Capital	35,738.45	35,357.84
Reserves & Surplus	6,770.54	3,226.09
Non-controlling interests	91.91	-1,102.33
Total Equity	42,600.90	37,481.60
Non-Current Liabilities
Borrowings	12,336.98	8,175.29
Lease Liabilities	1,813.28	2,333.00
Other financial liabilities	813.68	470.70
Provisions	5,956.57	7,364.66
Deferred tax liabilities (net)	1,393.10	1,059.91
Current Liabilities
Borrowings	28,425.20	22,224.34
Lease Liabilities	588.52	666.28
Trade payables
Total outstanding dues of Micro & Small enterprises	2,312.20	1,717.06
Total Outstanding dues of creditors other than above	11,407.99	11,907.22
Other financial liabilities	6,485.72	10,195.33
Other current liabilities	1,529.95	2,185.26
Provisions	797.35	204.06
Total Equity & Liabilities	1,16,461.44	1,05,984.71
Non-Current Assets
Property, plant and equipment	49,536.55	36,029.92
Right of use of assets	29,986.16	3,547.56
Capital work in progress	3,810.02	5,960.45
Goodwill	797.25	797.25
Other intangible assets	1,453.44	525.21
Intangible assets under development	2,863.38	1,800.56
Investments	300.20	156.20
Loans	136.32	131.07
Other financial assets	497.63	739.13
Deferred tax assets	214.25	41.59
Non-current tax assets (net)	1,253.93	904.59
Other Non-Current Assets	1,058.29	1,741.70
Current Assets
Inventories	19,125.52	17,989.79
Investments	216.02	667.56
Trade Receivables	20,233.12	19,478.69
Cash & cash equivalents	944.82	4,226.09
Bank balances other than above	3,831.00	4,600.00
Loans	111.35	60.19
Other financial assets	3,205.90	2,017.55
Other Current Assets	3,886.29	4,569.61
Total Assets	1,16,461.44	1,05,984.71

Hero Motors Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	1,08,959.39	1,06,438.59
Other Income	2,163.99	1,903.27
Total Income	1,11,123.38	1,08,341.86
Expenses
Cost of material consumed	63,044.35	64,044.80
Purchase of stock-in-trade	765.67	-
Change in inventories of finished goods, work in progress and stock in trade	-66.80	456.77
Employee Benefit Expenses	17,499.89	18,083.45
Finance Costs	3,312.12	2,994.42
Depreciation & amortization expense	3,794.42	2,855.14
Other Expenses	18,865.93	17,475.87
Total Expenses	1,07,215.58	1,05,910.45
Profit Before Tax	3,907.80	2,431.41
Current Tax	774.31	124.68
Deferred Tax	-146.29	603.10
Profit/(Loss) for the period	3,279.78	1,703.63
Other Comprehensive Income
Items that will not be reclassified to profit and loss
Re-measurement gains/(losses)on defined benefit plans	1,227.65	-488.09
Income tax effects	-306.82	-23.62
Items that will be reclassified to profit and loss
Exchange differences in translating the financial statements of foreign operations	29.99	-423.71
Total Other Comprehensive Income for the Year	4,230.60	768.21
Earning per share
Basic	0.67	0.36
Diluted	0.66	0.35

Hero Motors Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit Before Tax	3907.80	2431.41
Adjustments for:
Depreciation and amortization	3794.42	2855.14
Interest Cost	2,663.20	2,115.96
Other borrowing cost	648.92	878.46
Net foreign currency transiation	29.99	-
Provision/sundry balances written back	-200.25	-300.08
Mark to market gain on forward contract	-26.84	-
Unrealized foreign exchange gain	-132.72	87.79
Loss on sale of property plant and equipment (net)	-11.49	-10.84
Share based payment expenses	1,481.65	3,946.17
Gain on derecognition of right of use asset ad lease liability	-	-105.12
Profit on sale of fair valuation of mutual funds	-49.24	-87.29
Other non-operating income	-9.01	-2.99
Rental Income	-4.78	-2.35
Interest Income	-474.34	-967.58
Operating cash flows before working capital change	11,617.31	10,838.66
Working capital adjustments:
Increase/(Decrease) in Trade receivables	-605.30	5,131.59
Increase/(Decrease) in Inventories	-1,135.73	1,589.50
Increase/(Decrease)in Other Financial assets	-1,166.55	1,901.67
Increase/(Decrease) Other assets	463.78	-2,345.49
(Increase)/Decrease in Trade payables	285.29	-926.24
(Increase)/Decrease in Other financial liabilities	-3,759.98	-3,050.02
(Increase)/Decrease in provisions	412.85	-31.57
(Increase)/Decrease in Other liabilities	-655.31	675.78
Cash Generated from Operations	5,456.36	13,783.90
Direct Tax Paid	-1,123.65	-934.28
Net Cash from Inflow from Operating Activities	4,332.71	12,849.62
Cash Flow from Investing Activities
Purchase of Fixed Assets (including WIP)	-15,240.21	-13,283.43
Proceeds from sales of property, plant and equipment’s	28.31	25.07
Investment in debenture/shares/mutual funds	-144.00	-38.04
Proceeds from sale of mutual funds	500.78	949.99
Loans given to employees	-56.41	-155.37
Interest received	729.89	854.46
Rent received	4.78	2.35
Investments in bank deposits (net)	769.00	3,955.18
Net Cash from Investing Activities	-13,407.86	7,689.79
Cash Flow from Financing Activities
Proceeds from long term Borrowings	8,629.54	4,825.00
Repayment of long-term Borrowings	-3,774.26	-2,253.14
Proceeds from / repayments of short term borrowings (net)	5,480.40	823.23
Payment of final dividend	-942.05	-935.70
Share issue expenses	-31.52	-29.33
Proceeds from issue of equity shares	380.61	-
Payment of principal portion of lease liabilities	-667.76	-654.12
Payments of interest portion of lease liabilities	-208.30	-211.67
Other borrowing cost	-648.92	-878.46
Interest paid	-2,462.27	-2,375.34
Net Cash Inflow from Financing Activities	5,755.47	-1,689.53
Net decrease in Cash & cash equivalents	-3,319.68	3,470.30
Cash and cash equivalents at the beginning of the year	4,226.09	755.79
Effect of exchange rate change on cash and cash equivalents	38.41	-
Total Cash & Cash Equivalents	944.82	4,226.09

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company generated ₹4,332.71 lakhs of net cash from operating activities, which is significantly lower compared to ₹12,849.62 lakhs in FY 2023–24. Although profit before tax increased to ₹3,907.80 lakhs (FY24: ₹2,431.41 lakhs), the operating cash flow was impacted by adverse working capital movements. High non-cash adjustments such as depreciation and amortisation of ₹3,794.42 lakhs, interest and borrowing costs, and share-based payment expenses supported operating cash flows. However, substantial outflows due to increase in trade receivables, inventories, other financial assets, and other financial liabilities reduced cash generation. After adjusting for working capital changes, cash generated from operations stood at ₹5,456.36 lakhs, and after payment of direct taxes of ₹1,123.65 lakhs, net operating cash inflow declined sharply, indicating pressure on liquidity from operational activities despite improved profitability.

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹13,407.86 lakhs from investing activities in FY 2024–25, compared to a net inflow of ₹7,689.79 lakhs in the previous year. The primary reason for this outflow was significant capital expenditure on fixed assets amounting to ₹15,240.21 lakhs, reflecting ongoing expansion or capacity enhancement. This was partially offset by proceeds from sale of mutual funds (₹500.78 lakhs), interest income (₹729.89 lakhs), and net withdrawal from bank deposits (₹769.00 lakhs). Overall, the heavy investment outflow suggests an aggressive investment phase, which may support long-term growth but has negatively impacted short-term cash position.

Cash Flow from Financing Activities

Financing activities resulted in a net cash inflow of ₹5,755.47 lakhs in FY 2024–25, as against a net outflow of ₹1,689.53 lakhs in FY 2023–24. The company raised substantial funds through long-term borrowings of ₹8,629.54 lakhs and net short-term borrowings of ₹5,480.40 lakhs. These inflows were partly offset by repayment of long-term borrowings (₹3,774.26 lakhs), payment of interest (₹2,462.27 lakhs), dividend payout (₹942.05 lakhs), and lease liability payments. The positive financing cash flow indicates increased reliance on external funding to support capital expenditure and working capital requirements.

Net Change in Cash and Cash Equivalents

Despite positive operating and financing inflows, the company experienced a net decrease in cash and cash equivalents of ₹3,319.68 lakhs during FY 2024–25, mainly due to heavy investing cash outflows. Cash and cash equivalents declined from ₹4,226.09 lakhs at the beginning of the year to ₹944.82 lakhs at the end of the year. A minor positive impact of ₹38.41 lakhs from foreign exchange translation was recorded. The significant reduction in closing cash balance highlights short-term liquidity stress, though it is largely attributable to strategic investments undertaken during the year.