India's largest two-wheeler maker Hero MotoCorp will announce its third quarter ended December 31, 2017 results on Wednesday. 

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Stocks of Hero Motocorp will be in focus as the company will be going to announce its third quarter result for October – December 2016, period. The company is expected to post a decline in its pure profits margins, analysts say. 

Nishit Jalan and Hitesh Goel analysts at Kotak Institutional Equities said, “We expect two-wheeler companies to have a tough quarter with EBITDA for Hero MotoCorp declining by 21% on year-on-year basis.”

However, the duo added, “We expect EBITDA margin to improve by 220 bps qoq due to negative operating leverage benefits (-120 bps) and rise in commodity costs (-100 bps).”

Kotak projects HeroMotoCorp to report adjusted net profit of Rs 673.1 crore, down by 15.4% year-on-year (YoY) and 33% quarter-on-quarter (QoQ). 

Net sales is seen at Rs 6315.7 crore, declining by 13.4% yoy and 19% qoq. 

In the month of December 2016, the company sold 3,30,202 vehicles, down by 33.91% from 4,99,665 units a year ago same period. 

In its Q2, Hero MotoCorp recorded net profit of Rs 1004 crore, a rise of 28% compared to Rs 789 crore in the corresponding quarter of the previous year. 

Pawan Munjal, Chairman, Managing Director and Chief Executive Officer had said, “The company has also delivered its commitment for strengthening the profitability by crossing the threshold Rs 1000 crore  in the net profit for the first time in a quarter."