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Hero Motocorp Q2 net may rise 44% at Rs 694cr: ICICIdirect

Revenues are expected to decrease by 0.6 percent Q-o-Q (up 22.2 percent Y-o-Y) to Rs 6997.5 crore, according to ICICIdirect.

October 16, 2014 / 03:01 PM IST
 
 
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ICICIdirect has come out with its second quarter (July-September) earnings estimates for the automobile sector. The brokerage house expects Hero Motocorp to report a 23.4 percent growth quarter-on-quarter (growth of 44.2 percent year-on-year) in net profit at Rs
694.2crore.


Revenues are expected to decrease by 0.6 percent Q-o-Q (up 22.2 percent Y-o-Y) to Rs 6997.5 crore, according to ICICIdirect.


Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 1.5 percent Q-o-Q (up 12 percent Y-o-Y) to Rs 932.8 crore.


ICICIdirect on Hero Motorcorp:


HMCL's volumes have been strong as the dealer inventory ramp-up has been robust on expectation of a solid festive season. Volumes are likely to increase 22 percent Y-o-Y 1.7 million units, but 1 percent Q-o-Q lower. The motorcycle segment rose 22 percent Y-o-Y to 1.5 million units while the scooter segment has struggled with capacity constraints and is likely to have grown merely 4 percent Y-o-Y to 180,000 units. EBITDA margins are expected to decline 20 bps Q-o-Q to 13.3 percent on poorer product mix. PAT is likely to be boosted by end of royalty outgo to Honda. Topline and PAT are, thus, expected at Rs 7000 crore and Rs 695 crore, respectively.

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first published: Oct 16, 2014 03:01 pm

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