Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the auto sector. The brokerage house expects Hero Moto Corp to report a 8 percent growth quarter-on-quarter (growth of 17.2 percent year-on-year) in net profit at Rs 879.4 crore.
Sales are expected to increase by 1.8 percent Q-o-Q (up 9.9 percent Y-o-Y) to Rs 7646.2 crore, according to Motilal Oswal.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 5.4 percent Q-o-Q (up 18.2 percent Y-o-Y) to Rs 1239 crore.
Motilal Oswal's report on Hero Motocorp
Sales volume grew 6.1 percent Y-o-Y (+1.4 percent Q-o-Q) to 1.74m units, driven by new launches in the scooter segment. Realization should improve 3.6 percent Y-o-Y (flat Q-o-Q) to Rs 43,808 per unit, supported by price hikes of 0.8-1 percent taken in May 2016. Net revenue is likely to grow 10 percent Y-o-Y (2 percent Q-o-Q) to Rs 76.4b.
EBITDA margin is expected to expand 110bp Y-o-Y (+60bp Q-o-Q) to 16.2 percent on lower raw material costs and benefit of operating leverage. EBITDA is likely to grow 18 percent Y-o-Y (+5 percent Q-o-Q) to Rs 11.9b. We expect PAT to increase 17 percent Y-o-Y (+8 percent Q-o-Q) to Rs 8.8b.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.