Hero MotoCorp Q2 Results Preview: Automaker's EBITDA set to soar because of reduction in input cost, better operating performance

Hero MotoCorp Q2 Results Preview: A reduction in input cost and better operating performance is likely to translate into a 24.3 per cent increase in its EBITDA as India's largest two-wheeler manufacturer, Hero MotoCorp, is set to announce its second-quarter results on Wednesday (November 1, 2023). 

Zee Business research expects the automaker's standalone profit after tax to increase by 24.3 per cent to Rs 1,290 crore in Q2 from Rs 1,038 crore in the year-ago period.

The analysts estimate the company's revenue to go up by 2.2 per cent to Rs 9,725 crore in the quarter under review from Rs 9,075 crore in the same quarter a year ago.

The research predicts strong operational performance from the company.

It says that the volume of vehicles for the company is estimated to decline by 0.8 per cent to 14,17 lakh, while realisation is likely to increase by 2.8 pr cent to 65,305/unit.

Research says that the company is likely to witness an increase of 24.3 per cent in its EBITDA to Rs 1,290 crore in the second quarter compared to Rs 1,038 crore in the corresponding period last fiscal.

The analysts expect a significant rise in the margin of Hero MotoCorp to Rs 13.9 per cent in the second quarter as against a 11.4 per cent jump in the same quarter last year.

The company's other income is also set to rise by 60 per cent to Rs 150 crore.

What to keep an eye on: Hero MotoCorp Q2 results

Analysts say that investors need to keep an eye on the outlook of exports and rural demand in the second-quarter result commentary, while updates on new product launch timeline and new EV launches are also important factors to follow in the September quarter results.

Hero MotoCorp Share Price

Hero MotoCorp shares ended 0.63 per cent lower, or Rs 19.55, at Rs 3,090.35 each on BSE on Tuesday.