India's largest two-wheeler maker Hero MotoCorp is likely to report a high single-digit growth in revenues in the second quarter, led by a rise in volumes and higher average selling prices (ASPs).

Revenue from operations during the quarter is seen rising 9% year-on-year, according to
an average estimate of four brokerages. Meanwhile, net profit may rise 10% year-on-year

EBITDA margins are likely to improve by 57 bps YoY, mainly driven by a richer product mix (higher sale volumes of premium motorcycles and exports), price hikes and cost control efforts.

Axis Securities

Revenue is expected to increase by 9% YoY led by a 7% increase in volumes, higher ASPs due to price hikes taken during the year, premiumisation trend and higher export
volumes.

Nuvama

Revenue growth YOY is likely to bes supported by volume growth and an increase in realisation. EBITDA margin may improve due to better net pricing. The key thing to watch out for is the demand outlook.

Kotak Equities

We expect revenues to increase by 9% YoY in 2QFY25 led by (1) 7-8% YoY increase in volumes driven by a ramp-up of Xtreme 125 volumes and (2) 1-2% YoY increase in ASPs due to a richer product mix (higher mix of premium motorcycles).

We expect EBITDA margin to improve by 40 bps QoQ mainly driven by (1) commodity tailwinds and (2) lower advertisement spends.

Motilal Oswal

Volumes grew 7% YoY on a low base of last year. Overall, we expect HMCL to post 8% YoY growth in revenue in 2Q. Improved share of 125CC segment is expected to drive better mix. Margins will largely remain stable QoQ given stable input costs and mix. Overall, we expect HMCL to post a 7% YoY growth in earnings in 2Q.

Published On - Nov 13, 2024

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