Hero MotoCorp Q4 Results Preview: Net profit to grow by one-fifth, margin may expand by 100 bps

Hero MotoCorp Q4 FY24 Results Preview: Hero MotoCorp is all set to report its financial results for the quarter as well as the year ended March 31, 2024, on Wednesday, May 8. Analysts expect the two-wheeler major, whose popular models include Splendor Plus, HF Deluxe, Passion Plus and Pleasure Plus, to stage a strong financial performance for the final three months of FY24 on the back of near-double-digit growth in volumes and a mild increase in realisations. 

According to Zee Business research, Hero MotoCorp is estimated to register a standalone net profit of Rs 1,030 crore for the January-March period, which translates into a rise of 19.9 per cent compared with the corresponding quarter a year ago. The analysts peg the motorcycle maker's fourth-quarter revenue at Rs 9,370 crore, up 12.8 per cent on a year-on-year basis.

New Delhi-headquartered Hero MotoCorp is expected to log quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,310 crore as against Rs 1,083 crore a year ago, according to the research.

Zee Business analysts estimate the auto major's margin, a key measure of profitability, to improve to 14 per cent for the quarter ended March 2024 from 13 per cent a year ago, driven by a better product mix and easing raw material prices. They expect Hero MotoCorp to clock 9.6 per cent year-on-year growth in sales volumes to 13.9 lakh along with a 2.1 per cent improvement in realisations to Rs 66,733 per unit on the back of price hikes. 

The analysts expect Hero MotoCorp's export volumes to increase 86 per cent on a year-on-year basis. 

Hero MotoCorp Q4 FY24 Results: What to look out for

Analysts say the auto maker's outlook on rural demand and exports as well as updates on its electric vehicle launch pipeline will be among the key monitorables in the upcoming earnings report. 

Hero MotoCorp Q3 Results: A summary

Hero MotoCorp's financial numbers for the quarter ended December 31 were largely in line with expectations. 

For the fiscal third quarter, Hero MotoCorp logged a 51 per cent jump in standalone net profit to Rs 1,073 crore with 21.1 per cent growth in revenue to Rs 9,724 crore. 

Hero MotoCorp shares: Past performance 

 As of May 7, Hero MotoCorp shares have rewarded investors with a return of almost 74 per cent, outperforming gains of 22 per cent and 63 per cent in the Nifty50 and Nifty Auto indices, respectively.

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