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    This document contains financial information for an organization from 2006-2013, including average capital employed, debt to capital ratios, cost of equity and debt, economic value added (EVA), return on capital employed, weighted average cost of capital, and enterprise value. The EVA has increased each year, showing positive economic profits. The return on capital employed and EVA as a percentage of capital employed have also mostly increased year-over-year, demonstrating strong financial performance. The enterprise value has generally risen over this period as well.

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    This document contains financial information for an organization from 2006-2013, including average capital employed, debt to capital ratios, cost of equity and debt, economic value added (EVA), return on capital employed, weighted average cost of capital, and enterprise value. The EVA has increased each year, showing positive economic profits. The return on capital employed and EVA as a percentage of capital employed have also mostly increased year-over-year, demonstrating strong financial performance. The enterprise value has generally risen over this period as well.

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    34 views1 page

    Hero Motocorp Eva

    Uploaded by

    pro
    This document contains financial information for an organization from 2006-2013, including average capital employed, debt to capital ratios, cost of equity and debt, economic value added (EVA), return on capital employed, weighted average cost of capital, and enterprise value. The EVA has increased each year, showing positive economic profits. The return on capital employed and EVA as a percentage of capital employed have also mostly increased year-over-year, demonstrating strong financial performance. The enterprise value has generally risen over this period as well.

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    of 1

    Economic Value-added

    (EVA) Statement
    ` crores
    2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

    Average capital employed 2,415 2,877 3,499 3,705 3,989 4,866 5,286
    Average debt/ Average capital (%) 1.1 1.1 0.6 0.2 2.2 3.4 1.8
    Average equity/ Average 98.9 98.9 99.4 99.8 97.8 96.7 98.3
    capital (%)
    Cost of debt (% post-tax ) 0.6 0.9 1.6 1.9 1.4 1.2 1.2

    Cost of Equity
    Beta 0.75 0.59 0.59 0.63 0.64 0.66 0.73
    Cost of risk-free debt (%) 8.15 7.94 6.99 7.50 7.99 8.53 7.96
    Market premium (%) 10 10 10 10 10 10 10
    Cost of equity (%) 15.65 13.83 12.85 13.80 14.39 15.16 15.22

    Economic Value Added (EVA)


    Profit after tax 857.89 967.88 1,281.76 2,231.83 1,927.90 2,378.13 2,118.16
    Add: Interest*(1-tax rate) 1.02 1.32 1.67 1.39 10.55 14.39 7.86
    NOPAT=PAT + interest*(1-t) 859 969 1283 2233 1938 2393 2126
    Cost of capital 374 394 448 510 563 715 792

    EVA 485 575 835 1723 1376 1677 1334

    Return on capital employed (%) 35.6 33.7 36.7 60.3 48.6 49.2 40.2
    Weighted average cost of 15.5 13.7 12.8 13.8 14.1 14.7 15
    capital (%)
    EVA/Capital employed (%) 20.1 20.0 23.9 46.5 34.5 34.5 25.2

    ENTERPRISE VALUE
    Market capitalisation 13753 13869 21390 38827 31739 41041 30792
    Add: Debt 165 132 78 66 1491 995 281
    Less: Financial assets 2010 2698 3,588 5,833 5,200 4,041 3,805
    Enterprise value (EV) 11909 11303 17880 33060 28030 37995 27268

    EV/Year end capital 4.5 3.6 4.6 9.4 6.3 7.2 5.2
    employed (times)

    29
    CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

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