NEW DELHI: Shares of Hero MotoCorp rose a per cent in Tuesdays trade ahead of its quarterly results.
Analysts expect the two-wheeler major Hero MotoCorp to report a marginal dip in its bottom line figures for the quarter ended September 30. Realisations, they say, may improve due to the companys timely price hikes and non-adoption of aggressive pricing strategies.
On Tuesday, the scrip rose 0.90 per cent to Rs 2,909.35 on BSE.
Hero MotoCorp may report 5.50 per cent year-on-year rise in sales volume to 21,34,047 in Q2FY19 over 20,22,805 units in the same period last year.
An assessment by BOBCAPS showed that the two-wheeler major may report 3.10 per cent YoY fall in net profit for the quarter ended September 2018, while net revenue may increase by 8.1 per cent on YoY basis.
“We expect realisations to improve by 2.5 per cent YoY on account of price hikes and non-adoption of aggressive pricing strategies. Operating margins could decline around 140 basis points YoY as we estimate around 190 bps shrinkage in gross margins,” BOBCAPS said in a report.
Brokerage firm IDBI Capital Markets expects 6.40 per cent year-on-year fall in net profit at Rs 946.30 crore for the quarter ended September 2018. Hero MotoCorp had posted a net profit of Rs 1,010.50 crore in the corresponding quarter last year. However, the brokerage firm also projected 8.9 per cent year-on-year rise in topline figures in Q2FY19.
Ebitda and EPS may dip by 4.2 per cent YoY and 6.4 per cent YoY.
“EBITDA margin to decline 210 bps yoy (30bps qoq) due to higher raw material cost, IDBI Capital Markets said.