Company: Hero MotoCorp Ltd. Category: Result Analysis

Hero Motocorp’s (HMCL) Q1FY18 number to a great extent, meet the consensus estimates. Net sales were at Rs7,972cr, up 7.7% yoy. EBITDA was at Rs1,296cr up 5.4% yoy and PAT was at Rs914cr, up 3.5% yoy. Consensus estimates of revenue, EBITDA and PAT were Rs8,053cr, Rs1,280cr and Rs912cr. HMCL’s performance looks better than quarterly perfor..
Aug. 23, 2017, 6:46 p.m.

Total net revenues in the quarter went up by 7.7% yoy while growing at 15.3% qoq as volumes were up by 6.4% yoy in the best ever quarter as far as volumes are concerned. Realizations grew more than 1-2% on price hikes taken post BS IV implementation and to somewhat offset the RM price hike. RM costs to sales came in at 67.7% as against 67.1% yoy and 68.5% qoq as the impact of rising RM prices was offset by tight cost control and price hikes taken in May.
Aug. 23, 2017, 5:59 p.m.

During Q1FY18, Hero MotoCorp’s (HMCL) performance was on expected lines. Revenue growth was 7.7% YoY to Rs79.7bn (PLe: Rs79.2bn), while EBITDA grew 5.4% YoY to Rs12.96bn (in line with expectations); EBITDA margin was at 16.3%, lower 30bps YoY, but up 240bps QoQ (PLe: 16.1%). Gross margins were lower 60bps YoY (up 80bps QoQ) to ~32%. Staff costs to sales ratio was higher 30bps YoY, while OE / sales ratio was lower 30bps YoY. With slightly higher tax rate, net profit for the company grew 3.5% YoY to Rs9.14bn (PLe: Rs9.2bn).
Aug. 22, 2017, 1:53 p.m.

Hero MotoCorp: Company Research Report - Nirmal Bang
Aug. 22, 2017, 1:35 p.m.
Author : Nirmal Bang | Publisher: