Hero MotoCorp Q1 results:30-40% surge in profit likely;

Hero MotoCorp Q1 results: Emkay Global expects Hero MotoCorp to report 39.5 per cent YoY rise in profit at Rs 871.10 crore compared with Rs 624.50 crore in the same quarter last year.

We expect Ebitda margin to expand by 40 bps QoQ and 220 bps YoY on the back of improved operating leverage and price hikes," Nirmal Bang said. — Q1 results for Hero MotoCorp: Kotak Institutional Equities anticipates revenue growth of 7% YoY, driven by a 10% YoY rise in average selling price (ASP) as a result of price hikes and a more varied product mix.

Hero MotoCorp is anticipated to record a 30-40% year-over-year (YoY) increase in net profit on the back of a 6-7% increase in revenues, mostly driven by an increase in average selling price (ASP) for the quarter due to price rises, despite a decline in volumes.

Emkay Global anticipates Hero MotoCorp to record a 39.5% year-over-year increase in profit at Rs. 871.10 crore as opposed to Rs. 624.50 crore in the same quarter last year.

From Rs 8,393 crore in the previous quarter to Rs 8,930 crore this quarter, revenue is up 6.4 percent YoY. Despite a drop in volumes (down 3% YoY), revenue may increase YoY due to stronger realisations.

“Realizations are likely to increase QoQ, driven by price increases, with Ebitda margin expected to improve due to higher volumes (up 6.5%),” Emkay noted while speculating on a margin figure of 13.5%.

Profit for this brokerage came in at Rs. 875.90 crore, up 40.3%. Kotak expects revenue to increase 7% year over year to Rs 8,976 crore.

Elara Securities forecasts a profit of Rs 819.90 crore, up 31.3%, with sales expected to increase by 6.4% year over year to Rs 8,931.90 crore.