Hero Honda Q1 PAT seen up 10.5% at Rs 543 cr
India's largest two-wheeler manufacturer Hero Honda is expected to report 10.5% rise in its first quarter FY12 profit after tax to Rs 543 crore against Rs 491 crore in the year ago period.
July 21, 2011 / 13:14 IST
India's largest two-wheeler manufacturer Hero Honda is expected to report 10.5% rise in its first quarter FY12 profit after tax to Rs 543 crore against Rs 491 crore in the year ago period.
Revenues are seen going up by 32% to Rs 5,660 crore from Rs 4,296 crore year-on-year. However, operating profit margin is expected to be at 12% - lower as compared to 14% in Q1FY11.What to watch out for :
* Within the 2 wheeler space, Hero Honda to record the strongest sales growth driven by volumes (up 24% YoY while Bajaj Auto went up 18% YoY and TVS up 16% YoY )
* Hero Honda will be back in the PAT growth trajectory after 4 successive quarters of de-growth
* Realizations should improve by 7% YoY (0.6% QoQ ) on account of price increases of Rs 500-1000/unit taken at beginning of March - 2011
* Hero Honda has once again raised prices by Rs 500-600/unit in June 2011, full benefit to be seen next quarter. Expect commentary on : * Post its split with Honda, Hero Honda needs to address challenges related to new product development, brand transition, developing export markets and maintaining market share. * It needs to build its fourth plant to meet strong demand and maintain its market share
Volume growth Total volume went up 24% to 15.29 lakh units in Q1 against 12.34 lakh in Q1FY11.FY11 total volume jumped 33% to 54 lakh units from 46 lakh in FY10. 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!
