Hero MotoCorp Q1 results preview: Net profit likely to jump 37%, margin may expand by 180 bps

Hero MotoCorp — a manufacturer of motorcycles and scooters — will report its financial results for the April-June period on Thursday, August 10. Analysts expect the New Delhi-based auto major — whose popular models include Splendor Plus, HF Deluxe, Passion Plus and Pleasure Plus — to stage a strong quarterly performance driven by price hikes and improvement in operating performance despite a dip in volumes. 

According to Zee Business research, Hero MotoCorp is likely to report a standalone net profit of Rs 855 crore for the quarter ended June, which translates to an increase of 36.8 per cent compared with the corresponding period a year ago. The analysts estimate the company's revenue for the first quarter of the current financial year at Rs 8,930 crore as against Rs 8,393 crore for the year-ago period. 

The company is expected to report Rs 1,160 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) for the June quarter, marking growth of 23.2 per cent on a year-on-year basis, according to the research. 

Zee Business analysts peg the auto maker's margin — a key measure of profitability — to improve by 180 basis points to 13 per cent. 

How Hero MotoCorp fared in the March quarter

For the final quarter of the financial year 2022-23, Hero MotoCorp reported a better-than-expected 37 per cent jump in net profit to Rs 859 crore over revenue growth of 11.9 per cent to Rs 8,307 crore. Its EBITDA expanded by almost one-third to Rs 1,083 crore from Rs 828 crore a year ago and margin came in at 13 per cent. 

Zee Business analysts had pegged the company's profit at Rs 742 crore, revenue at Rs 8,260 crore, EBITDA at Rs 985 crore and margin at 11.9 per cent for the March quarter. 

Hero MotoCorp shares 

The Hero MotoCorp stock finished the June quarter 24 per cent stronger, sharply outperforming a 10.5 per cent rise in the headline Nifty index. 

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