Hero sold 18.15 lakh units in the September quarter, a 7 percent year-on-year increase and 222 percent sequential. The company also announced a hike in prices.
Two-wheeler maker Hero MotoCorp on October 28 is expected to report a double-digit year on year growth in earnings in the September quarter following an increase in volumes and price hikes.
The profit may see around 10 percent growth while revenue from operations and the operating income may increase by 25 percent compared to the year-ago period.
Hero sold 18.15 lakh units in the quarter ended September 30, registering a 7 percent year-on-year increase and 222 percent sequential. The company also announced a hike in prices.
"With volume increase and realisation increase of around 20 percent YoY on account of recent product price hikes and BS6 pricing, revenue to increase 29 percent YoY/ 228 percent QoQ. Operating margins are expected to remain stable YoY at 14.5 percent (up 3.6 percent in Q1FY21) as higher raw material cost to get offset by positive operating leverage," said Prabhudas Lilladher, which sees 13.8 percent growth in profit YoY.The company witnessed better demand recovery due to a strong entry-level portfolio and robust rural recovery, said Motilal Oswal. The brokerage expects a 13 percent YoY growth in adjusted profit, a 25.2 percent rise in revenue and a 27.3 percent increase in EBITDA YoY for the quarter.