Hero Motocorp is expected to announce its Q2 results on November 14. The company’s shares were trading in the red on Thursday morning.
What Happened: The two wheeler maker is expected to post a 9% year on year increase in standalone net profit to ₹1,148.90 crore in the September quarter according to average estimates of five brokerages. The Harley Davidson maker might see revenue gain 8.25% from the previous year to ₹10,225.22 crore.
| Brokerages | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| Motilal Oswal | ₹ 10,242.30 | ₹ 1,467.80 | ₹ 1,126.70 |
| Kotak Institutional Equities | ₹ 10,274.20 | ₹ 1,524.40 | ₹ 1,166.20 |
| Nuvama Institutional Equities | ₹ 10,132.50 | ₹ 1,458.90 | ₹ 1,145.50 |
| Elara Capital | ₹ 10,192.10 | ₹ 1,508.40 | ₹ 1,135.10 |
| Axis Securities | ₹ 10,285.00 | ₹ 1,505.00 | ₹ 1,171.00 |
| Average | ₹ 10,225.22 | ₹ 1,492.90 | ₹ 1,148.90 |
See Also: NBCC Appoints Anjeev Kumar Jain As New CFO
The company is expected to post revenue growth on the back of higher volumes and average selling price (ASP). Axis Securities said Hero’s revenue rise 9% due to 7% jump in volumes, higher average selling price due to price hikes, premiumisation trends and export volumes.
The brokerage sees the company’s EBITDA margin to improve 0.57% year on year due to richer product mix, which consisted of higher sale volume of premium motorcycles and exports.
Motilal Oswal said the rise in 125 cc models will improve the product mix.
Price Action: Shares of Hero Motocorp fell 0.54% to ₹4,495 on Thursday morning ahead of the results.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.