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Hero Motocorp Q2 net seen up 2.6% at Rs 452 cr: P Lilladher

According to Prabhudas Lilladher, Hero Motocorp to report a 17.6 percent degrowth quarter-on-quarter (up 2.6 percent Y-o-Y) in net profit at Rs 451.8 crore.

October 23, 2013 / 09:59 AM IST
 
 
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Prabhudas Lilladher has come out with its second quarter (July-September) earnings estimates for the automobile sector. The brokerage house expects Hero Motocorp (HMCL) to report a 17.6 percent degrowth quarter-on-quarter (up 2.6 percent Y-o-Y) in net profit at Rs 451.8 crore.


Revenues of Hero Motocorp are expected to decrease by 8.5 percent Q-o-Q (up 8.7 percent Y-o-Y) to Rs 5,636.3 crore, according to Prabhudas Lilladher.


Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 13.8 percent Q-o-Q (up 9.7 percent Y-o-Y) to Rs 789.3 crore.


EBITDA margin or operating profit margin is likely to be at 14 percent in June quarter as against 14.9 percent in March quarter and 13.9 percent in a year ago period.


Prabhudas Lilladher's Report on Hero Motocorp:


HMCL reported a 6.3 percent Y-o-Y growth in volumes on account of lower base of last year and pick up in rural sales.


EBITDA margins are expected to be flat Y-o-Y on account of higher raw material cost (rupee depreciation of 8.0 percent) being negated by higher operating leverage.


Tax rate is likely to increase to 27 percent v/s 16.3 percent Y-o-Y, thereby, resulting in a flat PAT Y-o-Y.

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first published: Oct 23, 2013 09:59 am

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