According to the average estimates of four brokers, the profit for reporting may increase by 8% year-by-year-year (Yoy). Revenue, in the meantime, is seen growing 2%. The growth will be run by the rising shares of premium models and high precious 125cc variables.
The two-wheeler (2W) demand was overcome in the fourth quarter, with a slight decline in volume growth. Despite poor volume performance, ASP for the bike is expected to improve, executed by a convenient product mix, especially in 125cc segment. This mixture is expected to support normal growth in overall income.
While overall volume growth is poor, some models in the premium and 125cc category have shown elasticity. The positive effect of a more rich product mixture is likely to partially offset the weakness in the demand for lower-CC models.
Here’s what analysts expect from Hero MotoCorp Q4:
Living events
Novels
Revenue growth will be supported by the increase of realization. EBITDA margin will contract due to more marketing costs (Auto To Take Expo and Product Launch). The main things to keep in mind are the timeline of the demand and the timeline of the new projection
Kotak equity
We expect that 4 QFY 25 will grow 3% yoy, led by flat yo volumes, run by the extreme 125 volumes ramp-up, compensating for the 110cc motorcycle segment and richer product mixture (premium motorcycles and 125 cc.
Motilal Oswal
Volume growth was subsequently surpassed by 2W demand expectations, resulting in a decrease of 1% yoy. However, we expect its ASP to improve the Yoy 3% under the leadership of the revised mix of 125cc. This leads to the revenue growth of 2% yoy.
(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)
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