Hero Motocorp Q3 net may rise 27% to Rs 621 cr: Poll

Hero Motocorp, the country's largest two-wheeler manufacturer, will announce its third quarter earnings today. Here is what the poll of CNBC-TV18 analysts expect from the company.

Earnings Q3FY14 Y-o-Y-Revenues may go up 11.5 percent to Rs 6,900 crore versus Rs 6187.6 crore-EBITDA may rise 35 percent to Rs 1,051 crore versus Rs 778.6 crore-Operating profit margin may expand to 15.2 percent versus 12.5 percent-PAT is seen up 27 percent to Rs 621 crore versus Rs 487.9 crore

Factors to watch out for

-Analysts expect strong growth in earnings this quarter, may surprise positively-Margin have seen gradual uptick in the last few quarters and that will continue-Volumes up 7 percent Y-o-Y (19 percent Q-o-Q) to 16.8 lakh units due to good festive season demand-Product mix was favourable Q-o-Q, with contribution from the economy segment declining to 17 percent in Q3FY14 versus 21 percent in the previous quarter-Strong rural demand coupled with 5-year warranty scheme aided volume growth-EBITDA margins to improve aided by 1 percent price increase in October and cost reduction initiatives-Margins to improve Q-o-Q due to positive operating leverage-Higher tax rate to impact net profit as excise duty for Haridwar plant has ended-Despite increase in tax rate, earnings to grow at an impressive 28 percent Y-o-Y -Also, Hero's base for last year is favourable as volumes had declined in Q3FY13 and margins were at their lowest point in the cycle-Royalty payment will likely be lower by around Rs 15 crore to Japanese Yen depreciation