Hero MotoCorp Q4 Results Preview: Robust volumes to drive revenue, profit higher; margins to expand

The automaker had already reported 10% year-on-year growth in volumes, led by steady demand trends in the entry-level motorcycle segment.

Analysts also expect to improve up to 123 bps year-on-year due to richer product mix (higher sale of ), , and lower other expenses.

Here's what to expect from Hero MotoCorp's Q4:

Axis Securities

Revenue is expected to increase by 14% year-on-year led by 10% increase in volumes, higher ASPs due to price hikes taken during the year, premiumization trend and recovery in entry level motorcycles.

Kotak Equities

We expect revenues to increase by 16% year-on-year in 4QFY24 led by 10% year-on-year increase in volumes and 5-6% year-on-year increase in ASPs due to price increases and a richer product mix (higher mix of premium motorcycles).

We expect EBITDA margin to improve by 60 bps quarter-on-quarter mainly driven by a richer product mix (higher mix of premium motorcycles segment), commodity tailwinds and lower advertisement spends, partly offset by negative operating leverage.

Nuvama

year-on-year to be supported by robust volume growth and increase in realizations. EBITDA margin to expand on better net pricing, mix and scale. Key thing to watch out for is the .

Motilal Oswal

Volumes grew 10% year-on-year on a low base of last year. Overall, we expect HMCL to post 12% year-on-year growth in revenues in the fourth quarter. Margins to remain stable quarter-on-quarter at 14% (+100bp year-on-year). Overall, we expect HMCL to post a strong 19% year-on-year growth in earnings in the fourth quarter.

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