Hero MotoCorp Q3 Results Preview: Auto major likely to stage a strong show with 48% EBITDA jump as input costs eases

Automobile major Hero MotoCorp is all set to report its financial results for the December quarter on Friday, February 9. Analysts expect the auto company, whose popular motorcycles include Splendor Plus, Passion Plus and Xtreme, to post a strong set of earnings on the back of increased volumes.

According to Zee Business research, Hero MotoCorp is estimated to register a 47.7 per cent year-on-year jump in standalone net profit to Rs 1,050 crore for the quarter ended December 31, 2023. The analysts peg the auto maker’s top-line for the fiscal third quarter to grow 21.4 per cent to Rs 9,750 crore.

Hero MotoCorp is expected to clock 48.2 per cent growth in quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) to Rs 1,370 crore driven by easing input costs, according to the research.

Zee Business analysts peg the two-wheeler manufacturer to clock a margin of 14.1 per cent for the fiscal third quarter, up 260 basis points on a year-on-year basis. They estimate New Delhi-headquartered Hero MotoCorp to register 17.8 per cent growth in volumes to 14.6 lakh units, contributing to an increase of 2.0 per cent in realizations to Rs 66,013 per unit on the back of recent price hikes.

In October, Hero MotoCorp hiked the prices of select models by 1.0 per cent. 

Key monitorables

Investors will track Hero MotoCorp’s earnings closely for the company’s demand outlook in the export and rural markets, and launch pipeline its electric vehicle segment.

Hero MotoCorp shares: Past performance

Hero MotoCorp shares have rewarded investors with a return of 84 per cent in the past year, outperforming a 22 per cent rise in the headline Nifty50 index.