Hero MotoCorp Q2 Results Preview: Net profit likely to jump 35% to ₹967 crore; revenue seen up 2% YoY
Hero MotoCorp, the world’s largest two-wheeler manufacturer, will report its financial results for the quarter ended September 2023 today. The company is expected to see double digit growth in net profit, while revenue is seen rising moderately. Despite strong urban demand and adequate finance availability, volume performance of two-wheeler companies in Q2FY24 has been restricted due to the timing of the festive season.
Hero MotoCorp’s total volumes during the July-September quarter of FY24 decreased 0.8% to 14,16,526 units from 14,28,168 units in the corresponding quarter of previous fiscal. The drop in volumes was offset by average selling price (ASP) growth of around 3% YoY. Also Read: Bajaj Auto sales jumped 19% to 471,188 units in Oct 2023 The company’s net profit in Q2FY24 is expected to rise 35% to ₹967 crore from ₹716.1 crore in Q2FY23, as per average estimates of six brokerage firms.
The net profit growth is likely to be driven by higher selling prices and easing commodity costs. Hero MotoCorp’s revenue is expected to rise moderately by 2% to ₹9,257 crore from ₹9,075.4 crore, YoY. While its motorcycle sales are down 2% YoY in Q2, scooter sales are up 14% YoY.
The company’s entry level mix has declined QoQ by almost 500 bps. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The company’s earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter is expected to rise 28% to ₹1,329 crore from ₹1,038.3 crore, YoY. EBITDA margin is estimated to expand by 290 basis points (bps) to 14.35% from 11.44%, YoY, higher due to lower input cost.
Read more on livemint.com
