Honda India Power Products Limited Research Report

Honda India Power Products Limited (HIPP) Q3 FY 2022 Review

Honda India Power Products Limited (HIPP) reported net revenue of ₹33,751 lakhs for the quarter ended December 31, 2021, as compared to ₹28,546 lakhs for the quarter, ended December 31, 2020. EBIT and Profit After Tax were ₹3,118 lakhs and ₹2,322 lakhs for the quarter ended, December 31, 2021, as compared to ₹2,875 lakhs and ₹2,076 lakhs, during the corresponding quarter of the previous year.

Honda India Power Products Limited Investment Summary

Honda India Power Products Limited Overview

• Honda India Power Products (HIPP), a leading manufacturer of power products in India, successfully crossed the 5 million units accumulated production milestone in February 2022.

• In July 2020, the company changed its name from ‘Honda Siel Power Products Limited’ to ‘Honda India Power Products Limited.

• It exports its products to 35 plus countries across the world.

• The company has a network of 650 plus dealers through which it caters to

Honda India Power Products Limited Quarterly Summary

Business

• Honda India Power Products Limited (HIPP) is one of the first Japanese companies to enter the Indian market in 1985 and thereby contribute to strengthening economic relations between India and Japan.

• HIPP is engaged in manufacturing and marketing of Portable Gensets, Water Pumps, General Purpose Engines, Lawn Mower, Brush Cutters, and Tillers.

• The company is part of ‘Honda Group’.

• There was an agreement between Honda Motor Company Limited (parent) and Usha International Limited to operate the company as a joint venture entity. The following agreement was terminated on 31st March 2020. Post the termination, Usha International Limited has required, re-classification from promoter to the ‘public’ category.

• In FY 2020, Generator accounted for 62% of total revenue, followed by Engines (15%), Water Pumps (10%), Tillers (1%), and Others (12%). (Data for FY 2021 was not available)

• Out of the total revenue, 50% of revenue have generated from India and 50% from other countries in FY 2021, compared to 59% and 41% in FY 2020.

• Revenue has increased by 11% in FY 2021, compared to the previous year. But net profit dropped by 27% in FY 2021, compared to the previous year. Drop in profit was due to an increase in the prices of raw materials.

HIPP Revenue Trend

Topline and Bottomline trend (Lakhs)

EBITDA Margin Trend (%)

ROE, ROCE, and Asset Turnover trend (%)

Ratio Analysis