Q4FY22 Preview: Hero Motocorp: Revenues seen at Rs 73,621 million, PAT at Rs6,260 million

Result date: 3rd May, 2022
Recommendation: Buy
Target price: Rs3,200
 
Hero Motocorp witnessed sharp fall in sales volume for the March 2022 quarter. Sales were down 24% over the year-ago quarter and 8% sequentially. Though price hikes could offset some pressures from soaring input costs, they are unlikely to cushion revenue. Company’s revenue could decline 15.2% over the year-ago quarter.

EBITDA margins could contract 195 basis points year-on-year to 12.0%, even as improving revenue share of spares could keep sequential decline at 18 basis points.

Weakness in revenue as well as negative operating leverage could lead to 27.6% fall in Profit After Tax as compared to the year-ago quarter.

Important management insights to watch out for:


  • Outlook on demand across all segments and markets

  • Update on plans to launch its own EV scooter

  • Trends in input cost inflation, pricing action planned and margin levers

 






Rs Million

March 2022 estimates

YoY change

QoQ change

Revenue

73,621

(15.2)%

(6.6)%

EBITDA

8,832

(27.1)%

(8.0)%

Profit After Tax

6,260

(27.6)%

(8.8)%

Source: IIFL Research

#Q4FY22 #Preview #Hero #Motocorp #Revenues #million #PAT #Rs6260 #million

( With inputs from indiainfoline)