Hero MotoCorp Q4 Results Preview: Hero MotoCorp anticipates strong Q4 growth with a 14% revenue increase driven by higher volumes and ASPs. Profit is set to rise by 22% on the back of a 10% volume growth, while EBITDA margins are expected to improve by 123 bps.
Brokerage firms expect that Hero Motocorp may report a strong performance on YoY basis, but its quarter-on-quarter (QoQ) performance is seen better than TVS Motors,
HeroMoto Corp, slated to report its March quarter results (Q4FY21) on May 6, is expected to post nearly 60 per cent year-on-year growth in earnings before interest, tax, depreciation, and amortization (Ebitda) aided by healthy sales volume and low base effect. However, price hikes taken due to BS-VI transition and to off-set increase in input costs may not be enough to cushion Ebitda margin hit, say analysts. At the bourses, though, stock of the two-wheeler maker has underperformed the benchmark Nifty50 and the Nifty Auto index, ACE Equity data show. During three months to March, Hero Moto’s stock declined 6.3 per cent on the NSE relative to a gain of 5 per cent and 7.2 per cent in the benchmark and sectoral indices, respectively.