Q1 FY 23 Preview: Hero MotoCorp: Revenue seen at Rs85,222 million; PAT at Rs7,728 million

11 Aug 2022 , 04:30 PM

Result date: 12th August, 2022

Analysts at IIFL Capital Services forecast improvement in margins for Hero Motors in the June quarter.  Margins are expected to have improved in the quarter because of  price hikes by the company, operating leverage, and seasonal fall in marketing expenditure. Increase in input costs might have offset some of the increase in margins caused by the above factors. 

Revenue is forecasted at Rs85,222 million in the quarter. This will be a y-o-y growth of 55.3%. PAT is forecasted at Rs7,728 million. This will be a y-o-y growth of 111.5%.

Key management insights to look into:

• Commentary on margin outlook
• Commentary on further price hikes

	Q1 FY23 estimate	Y-o-Y	Q-o-Q
Volume (in units)	1,390,192	35.7%	16.9%
Revenue (Rs mn)	85,222	55.3%	14.8%
Ebitda (Rs mn)	10,618	106.2%	28.3%
PAT (Rs mn)	7,728	111.5%	23.2%

Source: IIFL Research