Hero Motocorp Q2 PAT may fall 0.9% at Rs 436.7 cr: MOST
According to Motilal Oswal, Hero Motocorp may report a 20.4 percent degrowth quarter-on-quarter (down 0.9 percent Y-o-Y) in net profit at Rs 436.7 crore.
October 23, 2013 / 09:56 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the automobile sector. The brokerage house expects Hero Motocorp to report a 20.4 percent degrowth quarter-on-quarter (down 0.9 percent Y-o-Y) in net profit at Rs 436.7 crore.
Revenues of Hero Motocorp are expected to decrease by 7.3 percent Q-o-Q (up 10.2 percent Y-o-Y) to Rs 5,678.2 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 19.3 percent Q-o-Q (up 18.9 percent Y-o-Y) to Rs 549.4 crore.Motilal Oswal's Report on Hero Motocorp:Expect 2QFY14 volumes to rise 7.9 percent Y-o-Y (-7.8 percent Q-o-Q) to 1.56m units. 1Q witnessed healthy sales due to strong demand during the marriage season and benefit from healthy rabi crop harvest. Adjusted margins to improve 70bp Y-o-Y (-140bp Q-o-Q) to 9.7 percent on adverse JPY/USD movement (vendors import with a quarter lag) and lower volumes.Demand environment for Hero MotoCorp has stabilized over the last few months and with good monsoon, outlook for 2H looks strong. We
estimate a volume growth of 5 percent/13.4 percent for Hero for FY14E/15E respectively.We downgrade FY14E/FY15E EPS by 1.1 percent/0.5 percent as we moderate our margin assumption on adverse INR/USD movement.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!
