Consider the following EVA in absolute terms with EVA Chart EVA creation in terms of EVA Spread and EVA Spread chart EVA Ratios and Ratio chart Correlation of EVA per share and EPS with market price Compute EV and MVA and analyse value creation destruction on these parameters Risk free return 6 50 ,Beta 0 779 PROFIT LOSS ACCOUNT OF HERO MOTOCORP (in Rs Cr ) MAR 19 MAR 18 MAR 17 MAR 16 MAR 15 12 mths 12 mths 12 mths 12 mths 12 mths INCOME REVENUE FROM OPERATIONS GROSS 33,124 53 32,230 84 30,540 67 30,618 09 29,235 64 Less Excise Sevice Tax Other Levies 0 00 641 33 2,371 13 2,258 18 1,717 64 REVENUE FROM OPERATIONS NET 33,124 53 31,589 51 28,169 54 28,359 91 27,518 00 TOTAL OPERATING REVENUES 33,650 54 32,230 49 28,500 46 28,599 30 27,585 30 Other Income 691 25 525 82 522 43 391 12 492 74 TOTAL REVENUE 34,341 79 32,756 31 29,022 89 28,990 42 28,078 04 EXPENSES Cost Of Materials Consumed 23,346 10 21,857 79 18,974 11 19,321 72 19,783 88 Operating And Direct Expenses 0 00 0 00 0 00 0 00 0 00 Changes In Inventories Of FG,WIP And Stock In Trade 28 38 23 15 63 17 6 82 29 97 Employee Benefit Expenses 1,730 24 1,540 13 1,396 01 1,319 56 1,172 87 Finance Costs 8 60 6 25 6 05 2 15 11 09 Depreciation And Amortisation Expenses 602 01 555 60 492 73 441 40 539 97 Other Expenses 3,672 49 3,575 53 3,432 36 3,517 83 3,116 34 TOTAL EXPENSES 29,331 06 27,512 15 24,364 43 24,595 84 24,594 18 PROFIT LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND TAX 5,010 73 5,244 16 4,658 46 4,394 58 3,483 86 Exceptional Items 0 00 0 00 0 00 0 00 155 04 PROFIT LOSS BEFORE TAX 5,010 73 5,244 16 4,658 46 4,394 58 3,328 82 TAX EXPENSES CONTINUED OPERATIONS Current Tax 1,601 02 1,446 95 1,082 08 960 88 898 91 Less MAT Credit Entitlement 0 00 0 00 0 00 0 00 0 00 Deferred Tax 24 84 99 85 199 26 301 33 44 27 Tax For Earlier Years 0 00 0 00 0 00 0 00 0 00 TOTAL TAX EXPENSES 1,625 86 1,546 80 1,281 34 1,262 21 943 18 PROFIT LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS 3,384 87 3,697 36 3,377 12 3,132 37 2,385 64 PROFIT LOSS FROM CONTINUING OPERATIONS 3,384 87 3,697 36 3,377 12 3,132 37 2,385 64 PROFIT LOSS FOR THE PERIOD 3,384 87 3,697 36 3,377 12 3,132 37 2,385 64 OTHER ADDITIONAL INFORMATION EARNINGS PER SHARE Basic EPS (Rs ) 169 48 185 14 169 12 156 86 119 00 Diluted EPS (Rs ) 169 47 185 13 169 12 156 86 119 00 VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES, SPARES AND LOOSE TOOLS Imported Raw Materials 0 00 0 00 0 00 972 56 14 33 Indigenous Raw Materials 0 00 0 00 0 00 18,434 78 16 22 STORES, SPARES AND LOOSE TOOLS Imported Stores And Spares 0 00 0 00 0 00 7 78 7 23 Indigenous Stores And Spares 0 00 0 00 0 00 34 38 35 32 DIVIDEND AND DIVIDEND PERCENTAGE Equity Share Dividend 1,897 35 1,697 50 1,737 34 1,437 75 1,198 12 Tax On Dividend 390 01 345 57 353 69 292 69 223 76 Equity Dividend Rate ( ) 4,350 00 4,750 00 4,250 00 3,600 00 3,000 00 BALANCE SHEET AS AT MARCH 31 2019 Amount in crores of INR) Particulars ASSETS Non current assets (al Property, plant and equipment b Capital work in progress (c) Intangible assets d Intangible assets under development lel Financial assets i Investments (ii) Loans f Income tax assets net) (g) Other non current assets Total Non Current Assets Current assets (a) Inventories b Financial assets i Investments ii Trade receivables (iii) Cash and cash equivalents iv Bank balances other than iii above (v) Loans vil Others (c) Other current assets Total Current Assets Total Assets EQUITY AND LIABILITIES Equity (a) Equity Share capital b Other equity Total equity LIABILITIES Non current liabilities (a) Provisions b Deferred tax liabilities (net) Total Non Current Liabilities Current liabilities a Financial liabilities (i) Trade payables Total outstanding dues of micro and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises ii Other financial liabilities (b) Other current liabilities (c) Provisions Total Current Liabilities Total Equity and Liabilities Note S678923 5 10 12 13 14 9 5700155 16 10 11 13 HE colml 18 19 20 21 22 23 24 20 As at March 31, 2019 4,477 53 360 67 141 05 181 19 2,801 51 59 96 839 26 664 38 9,525 55 1,072 37 3,167 10 2,821 57 40 68 95 78 25 03 653 89 239 22 8,115 64 17,641 19 39 95 12,817 17 12,857 12 117 20 536 51 653 71 3,355 28 220 87 495 18 59 03 4,130 36 17,641 19 As at March 31, 2018 4,485 89 203 78 168 65 114 61 1,934 08 45 68 379 26 558 67 7,890 62 823 58 5,591 12 1,520 18 34 38 106 96 27 56 539 37 205 03 8,848 18 16,738 80 39 94 11,728 94 11,768 88 114 94 511 66 626 60 3,318 81 202 14 762 58 59 79 4,343 32 16,738 80

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Consider the following: EVA in absolute terms with EVA Chart EVA creation in terms of EVA Spread and EVA Spread chart EVA Ratios and Ratio

Consider the following:
1. EVA in absolute terms with EVA Chart
2. EVA creation in terms of EVA Spread and EVA Spread chart
3. EVA Ratios and Ratio chart
4. Correlation of EVA per share and EPS with market price
Compute EV and MVA and analyse value creation/destruction on these parameters. Risk free return=6.50%,Beta=0.779

BALANCE SHEET AS AT MARCH 31 2019 (Amount in crores of INR) Particulars Note As at March 31, 2019 As at March. 31, 2018 4,477

PROFIT & LOSS ACCOUNT OF HERO MOTOCORP (in Rs. Cr.)	MAR 19	MAR 18	MAR 17	MAR 16	MAR 15
	12 mths	12 mths	12 mths	12 mths	12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS]	33,124.53	32,230.84	30,540.67	30,618.09	29,235.64
Less: Excise/Sevice Tax/Other Levies	0.00	641.33	2,371.13	2,258.18	1,717.64
REVENUE FROM OPERATIONS [NET]	33,124.53	31,589.51	28,169.54	28,359.91	27,518.00
TOTAL OPERATING REVENUES	33,650.54	32,230.49	28,500.46	28,599.30	27,585.30
Other Income	691.25	525.82	522.43	391.12	492.74
TOTAL REVENUE	34,341.79	32,756.31	29,022.89	28,990.42	28,078.04
EXPENSES
Cost Of Materials Consumed	23,346.10	21,857.79	18,974.11	19,321.72	19,783.88
Operating And Direct Expenses	0.00	0.00	0.00	0.00	0.00
Changes In Inventories Of FG,WIP And Stock-In Trade	-28.38	-23.15	63.17	-6.82	-29.97
Employee Benefit Expenses	1,730.24	1,540.13	1,396.01	1,319.56	1,172.87
Finance Costs	8.60	6.25	6.05	2.15	11.09
Depreciation And Amortisation Expenses	602.01	555.60	492.73	441.40	539.97
Other Expenses	3,672.49	3,575.53	3,432.36	3,517.83	3,116.34
TOTAL EXPENSES	29,331.06	27,512.15	24,364.43	24,595.84	24,594.18
PROFIT/LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND TAX	5,010.73	5,244.16	4,658.46	4,394.58	3,483.86
Exceptional Items	0.00	0.00	0.00	0.00	-155.04
PROFIT/LOSS BEFORE TAX	5,010.73	5,244.16	4,658.46	4,394.58	3,328.82
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax	1,601.02	1,446.95	1,082.08	960.88	898.91
Less: MAT Credit Entitlement	0.00	0.00	0.00	0.00	0.00
Deferred Tax	24.84	99.85	199.26	301.33	44.27
Tax For Earlier Years	0.00	0.00	0.00	0.00	0.00
TOTAL TAX EXPENSES	1,625.86	1,546.80	1,281.34	1,262.21	943.18
PROFIT/LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS	3,384.87	3,697.36	3,377.12	3,132.37	2,385.64
PROFIT/LOSS FROM CONTINUING OPERATIONS	3,384.87	3,697.36	3,377.12	3,132.37	2,385.64
PROFIT/LOSS FOR THE PERIOD	3,384.87	3,697.36	3,377.12	3,132.37	2,385.64
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.)	169.48	185.14	169.12	156.86	119.00
Diluted EPS (Rs.)	169.47	185.13	169.12	156.86	119.00
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES, SPARES AND LOOSE TOOLS
Imported Raw Materials	0.00	0.00	0.00	972.56	14.33
Indigenous Raw Materials	0.00	0.00	0.00	18,434.78	16.22
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares	0.00	0.00	0.00	7.78	7.23
Indigenous Stores And Spares	0.00	0.00	0.00	34.38	35.32
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend	1,897.35	1,697.50	1,737.34	1,437.75	1,198.12
Tax On Dividend	390.01	345.57	353.69	292.69	223.76
Equity Dividend Rate (%)	4,350.00	4,750.00	4,250.00	3,600.00	3,000.00

BALANCE SHEET AS AT MARCH 31 2019 [Amount in crores of INR) Particulars ASSETS Non-current assets (al Property, plant and equipment [b] Capital work-in-progress (c) Intangible assets [d] Intangible assets under development lel Financial assets [i] Investments (ii) Loans [f] Income tax assets [net) (g) Other non-current assets Total Non-Current Assets Current assets (a) Inventories [b] Financial assets [i] Investments [ii] Trade receivables (iii) Cash and cash equivalents [iv] Bank balances other than [iii] above (v) Loans [vil Others (c) Other current assets Total Current Assets Total Assets EQUITY AND LIABILITIES Equity (a) Equity Share capital [b] Other equity Total equity LIABILITIES Non-current liabilities (a) Provisions [b] Deferred tax liabilities (net) Total Non-Current Liabilities Current liabilities [a] Financial liabilities (i) Trade payables Total outstanding dues of micro and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises [ii] Other financial liabilities (b) Other current liabilities (c) Provisions Total Current Liabilities Total Equity and Liabilities Note S678923 5 10 12 13 14 9 5700155 16 10 11 13 HE colml 18 19 20 21 22 23 24 20 As at March 31, 2019 4,477.53 360.67 141.05 181.19 2,801.51 59.96 839.26 664.38 9,525.55 1,072.37 3,167.10 2,821.57 40.68 95.78 25.03 653.89 239.22 8,115.64 17,641.19 39.95 12,817.17 12,857.12 117.20 536.51 653.71 3,355.28 220.87 495.18 59.03 4,130.36 17,641.19 As at March. 31, 2018 4,485.89 203.78 168.65 114.61 1,934.08 45.68 379.26 558.67 7,890.62 823.58 5,591.12 1,520.18 34.38 106.96 27.56 539.37 205.03 8,848.18 16,738.80 39.94 11,728.94 11,768.88 114.94 511.66 626.60 3,318.81 202.14 762.58 59.79 4,343.32 16,738.80

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EVA stands for Economic Value Added which is a measure of financial performance calculated by subtracting the cost of capital from the net operating p... blur-text-image