Hero MotoCorp's net profit is likely to rise 35 percent to Rs 790 crore in October-December quarter from Rs 583 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, revenue may grow 5.8 percent at Rs 7241 crore versus Rs 6839.2 crore in year-ago period.
During the quarter, EBITDA may grow 35 percent at Rs 1112 crore versus Rs 821.7 crore while operating profit margin (OPM) may stand at 15.3 percent versus 12 percent (YoY).
Volume growth in Q3 was tepid, hence revenue growth is likely to be in low single digits. Volume in Q3 was up 2.5 percent at 16.90 lakh versus 16.48 lakh units (YoY). Tepid volume run rate is expected in key models like Passion and Splendor which have high rural exposure as rural slowdown concerns continue.
After a margin surprise in first half of FY15, analysts polled by CNBC-TV18 expect 50 basis points (bps) margin decline on higher advertising spends (quarter-on-quarter).
Realisation is liekly to improve 5 percent YoY to Rs 43577 per unit. The company is confident of retaining its scooter market share led by new launches Maestro edge and Duet which are doing well.
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