Hero MotoCorp Q2 Results Preview: PAT to likely climb on decent volume growth

The country's leading two-wheeler major Hero MotoCorp is slated to report its September quarter earnings on Thursday, November 14. The company's standalone profit after tax for the reporting quarter is seen edging higher by 10.1 per cent for the quarter to Rs 1,160 crore. In the same quarter last year, the company's profit was at Rs 1,054 crore.

Revenue from operations at the company also increased 8.6 per cent year-on-year (YoY) to Rs 10,256 crore from Rs 9,445 crore in Q2FY24.

Zee Business analysts believe better realisation, with growth of 1 per cent to Rs 67,398 per unit, will aid the company's profitability during the quarter. Realisation is primarily the money realised per unit considering sales all across segments.

On the operational front, EBITDA is estimated to grow by 13.7 per cent to Rs 1,510 crore from Rs 1,328 crore in the previous year. 

Consequently, EBITDA margin is also estimated to gain by 0.6 per cent year-on-year (YoY) to 14.7 per cent, in comparison to 14.1 per cent in September quarter of the previous year. Analysts held that better product mix and a decline in input costs are expected to bode well for the company.

Volume at the company, meanwhile, is seen to edge higher by 7.3 per cent to 15.2 lakh units in the reporting quarter. This is as the company's 125cc segment is logging decent market share growth.

Key monitorable

Investors will keep a watch on the new electric vehicle launches as well as rural demand outlook.

Hero MotoCorp share price

The stock in the last one year has gained 45 per cent, while Nifty Auto during the same time has zoomed 39 per cent. Ahead of its earnings tomorrow, the stock ended lower by a sharp over 4 per cent at Rs 4,519.6 per share.