Hero Honda Q3 profit seen up 5.2% at Rs 563 cr
India's largest two-wheeler maker Hero Honda is set to report profit after tax of Rs 563 crore, up 5.2% as compared to Rs 535 crore in same quarter the previous year.
February 02, 2011 / 12:35 IST
India's largest two-wheeler maker Hero Honda is set to report profit after tax of Rs 563 crore, up 5.2% as compared to Rs 535 crore in same quarter the previous year.
Revenues are seen going up by 32% at Rs 5,036 crore from Rs 3,826 crore. However, operating profit margin is likely to be declined at 13.5% versus 17.2% (YoY).Company sold 14.28 lakh units in third quarter of FY11, a growth of 28.5% as compared to 11.11 lakh units in same period of FY10. What to watch out for : -Revenue growth due to strong improvement in Volumes of 28.5% YoY and 8% QoQ
-Expect margins to drop on YoY basis due to raw material concerns but expect a sequential slight improvement due to better capacity utilisation
-Realizations are expected to improve by 2.7% YoY (nearly 0.5% QoQ) due to higher contribution from Haridwar (nearly 34.6% of volumes expected in 3QFY11 versus 33.3% in 3QFY10 and 33.5% in 2QFY11) and price increases during the quarter. Watch out for commentary on : -Post Hondas new arrangement, royalty to lower from January 2011
-The new arrangement, after Honda
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
