Hero Motocorp's third quarter profit is expected to increase 31 percent year-on-year to Rs 689 crore, according to the average of estimates of analysts polled by CNBC-TV18.
However, overall analysts expect a weak performance from the company in December quarter. Revenue is seen falling 1.3 percent to Rs 6,785 crore in Q3FY15 from Rs 6,876.8 crore in the year-ago period.
After a strong show in April-September period of FY15, volumes declined 2 percent year-on-year to 16.48 lakh units in Q3FY15. Domestic volumes slipped 5 percent to 15.71 lakh units due to overall weak sentiment and drop in rural economy.
Operating profit may increase 2.8 percent year-on-year to Rs 923 crore and margin may expand 60 basis points to 13.6 during the quarter due to price hikes of 0.7 percent announced in September.
Japanese yen depreciation (7 percent Y-o-Y against the rupee) also may support margin. However, margin gains may be impacted due to higher sales promotion spending (Company signed Tiger Woods as a global ambassador during the quarter) and excise duty mismatch at Haridwar plant.
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