 "Hero MotoCorp")
Hero MotoCorp Q4FY23 preview: Higher average-selling-price (ASP) driven by price hikes, along with improved sales mix will help Hero MotoCorp clock up to 4.5 per cent quarter-on-quarter (QoQ) rise in revenues to Rs 8,391 crore in the January-March quarter (Q4FY23), said analysts. The two-wheeler maker will announce results on Thursday, May 4.
According to brokerages, better product mix will buoy Hero MotoCorp’s Ebitda (earnings before interest, tax, depreciation, and amortisation) by 7.2 per cent QoQ, and 19.7 per cent year-on-year (YoY) to Rs 990 crore in the March quarter.
Ebitda margins, too, are expected to expand up to 77 basis points (bps) QoQ to 12.3 per cent in Q4, supplemented by price hikes, and lower discounting prices, added analysts.
Ebitda margins, too, are expected to expand up to 77 basis points (bps) QoQ to 12.3 per cent in Q4, supplemented by price hikes, and lower discounting prices, added analysts.
Adjusted profit-after-tax (PAT), meanwhile, is likely to grow up to 5.7 per cent QoQ, and 20 per cent YoY to Rs 752 crore.
At the bourses, shares of Hero MotoCorp have declined over 8 per cent so far this calendar year (CY23), as against 0.8 per cent rise in the S&P BSE Sensex.
Here are top brokerage estimates for Hero MotoCorp’s Q4FY23 numbers:
Axis Securities
The brokerage firm expects revenue to grow 4.5 per cent QoQ to Rs 8,391 crore in Q4FY23, led by higher sales, and improved ASP due to price hikes. Ebitda, too, is likely to increase 7 per cent QoQ to Rs 990 crore in the March quarter, driven by better product mix. Ebitda margins, on the other hand, is estimated to improve 29 bps to 11.8 per cent.
Motilal Oswal
Healthy recovery in urban demand, traction during the Navratri festival, and channel filling ahead of the BS6-II norms will aid 7 per cent YoY growth in the auto-maker’s volumes in Q4FY23, said analysts. Moreover, they anticipate price hikes to offset cost pressure impact, with operating leverage driving Ebitda margin sequentially in the March quarter. The brokerage firm shared a ‘buy’ stance on the counter, with a target price of Rs 2,840 apiece.
Prabhudas Lilladher
The brokerage firm models expansion in Ebitda margin at 12.8 per cent, up 113 bps YoY, and 77 bps QoQ in Q4FY23, due to lower discounting, and price hikes undertaken by the two-wheeler. Revenue, meanwhile, is expected to grow 3.4 per cent QoQ, and 11.8 per cent YoY to Rs 8,300 crore. Adjusted PAT, too, is likely to rise 5.6 per cent QoQ to Rs 751 crore in Q4FY23 from Rs 711 crore in Q3FY23.
Sharekhan
With 2.5 per cent QoQ growth in volumes, and improvement in product mix, analysts foresee Hero MotoCorp to report 3.4 per cent QoQ surge in revenue to Rs 8,304 crore. Ebitda margin, on the other hand, is estimated to expand 34 bps QoQ, and 70 bps YoY to ~12 per cent in Q4FY23. However, the bottom-line is expected to skid 3.6 per cent QoQ, analysts added.
