Hero MotoCorp Q2: What to expect from the result announcements today

 

At the bourses, shares of Hero MotoCorp rallied 23.5 per cent during the September quarter as compared to 9 per cent gain in the S&P BSE Sensex

Hero MotoCorp is scheduled to announce its September quarter earnings of FY21 (Q2FY21) on Wednesday. Brokerages expect the two-wheeler manufacturer to report up to 13 per cent increase in profit while revenues are expected to rise over 20 per cent, led by volume growth and increase in realisation.

According to Hero MotoCorp's monthly auto sales data, the company sold 18.14 lakh units during the quarter under review, up 7.3 per cent from 16.9 lakh units sold in Q2FY20. The company had sold 5.63 lakh units in Q1FY21.

At the bourses, shares of Hero MotoCorp rallied 23.5 per cent during the September quarter as compared to 9 per cent gain in the S&P BSE Sensex, ACE Equity data show.

Here's a quick look at what leading brokerages expect from Hero MotoCorp's September quarter nos.

Emkay

The brokerage expects Hero MotoCorp's revenue to grow 25.7 per cent on YoY basis to Rs 9,518.1 crore from Rs 7,570.7 crore reported in the year-ago quarter, owing to increase in realisation. Realisation, meanwhile, is expected to increase due to BS-VI launches and price hikes. The bottom line is also likely to grow 10.7 per cent YoY to Rs 1,018.7 crore from Rs 919.8 crore reported in Q2FY20.

Emkay expects the company's gross margin to decrease due to partial pass-through of BS6 impact. Also, Ebitda margin is expected to contract 66 basis points (bps) YoY to 13.9 per cent due to fall in gross margin. Earnings before interest, tax, depreciation, and ammortisation (Ebitda) is seen rising 20 per cent YoY to Rs 1,321.4 crore.