Hero MotoCorp Q4 preview: Analysts see up to 60% YoY rise in Ebitda

By Nikita Vashisht9 days ago

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.

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Here’s what key brokerages expect from Hero Moto’s result:

Nomura

The global brokerage has one of the most conservative estimates for the New Delhi-based firm with standalone net profit seen at Rs 794 crore, up around 28 per cent YoY, during the quarter under review. This compares with PAT of Rs 620.7 crore posted in Q4FY20 and Rs 1,084.5 crore in Q3FY21.

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