Hero MotoCorp gains ahead of Q4 earnings

The two-wheeler major is expected to report a Q4 net profit of Rs 460 crore

Shares of two-wheeler major Hero Motocorp jumped 2.5% to Rs 2,368 ahead of the announcement of fourth quarter earnings today.

Hero MotoCorp (HMCL) recorded volume growth of 4% YoY (down 5.4% QoQ) to 1,589,462 units in Q4FY14.
"We expect company’s average realization to grow by 3% YoY on account of product mix and price hikes. We expect HMCL to post net revenue of Rs 65.5 bn, up 6.7% YoY (down 4.7% QoQ). On account of commodity pressure as well as dealer compensation for excise reduction, we expect EBIDTA margin to decline by 152 bps YoY and 75 bps YoY to 12.3% due to sequential volume decline in Q4FY14. We expect its EBIDTA to decline by 5% YoY & 10% QoQ to Rs 8 bn," Karvy Institutional Research said in a preview note.

The brokerage expects the company to report a net profit of Rs 460 crore, down 20% YoY and 12% QoQ during the fourth quarter.

The stock opened at Rs 2,303.00, touched a high of Rs 2775.05 and a low of Rs 1565.95 on the BSE.
Over 454239 shares were traded on both the stock exchanges so far.